Central Banks
Citi’s Strategists Say Fed Should Pause, Opposing Its Economists
- Bank’s economists are holdouts for a half-point December cut
- Fed’s Dec. 18 decision seen as turning on November jobs data
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Interest-rate strategists at Citigroup Inc. say the Federal Reserve should pause its interest-rate cuts, further isolating the bank’s economists, who’ve stuck with a call for a half-point move in December long after others on Wall Street abandoned it.
“We believe that the Fed should put easing on hold, barring weak payrolls data in December,” strategists Jabaz Mathai and Alejandra Vazquez said in a Nov. 22 report, referring to the US employment report for November slated to be released on Dec. 6. And even if job creation is weak, “it can be argued that other labor market data such as jobless claims are indicating a resilient labor market.”