Weak labor market prompts Citigroup to delay the Federal Reserve's interest rate cut timetable

MaticHoleFiller · 2026-04-06T15:24:03+00:00

Citigroup has delayed expectations of Federal Reserve rate cuts, now anticipating a 75 basis point cut in September, October, and December. Weakening labor markets and rising inflation risks are the main reasons affecting the timing of rate cuts.

MaticHoleFiller

2026-04-06 15:24:03

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Citigroup pushed back its expectations for the Federal Reserve’s rate-cut timetable, citing weakness in the U.S. labor market and persistent inflation risks.

The Wall Street firm currently expects the Federal Reserve to cut rates by a total of 75 basis points in September, October, and December, after previously expecting cuts in June, July, and September.

Citigroup said: “We still believe that signs of weakness in the labor market will drive rate cuts later this year. But the timing of the data releases to come suggests that the start of rate cuts may be later than we previously expected.”

There are still no clear signs that the war between the United States and Iran will end, and downside risks to the labor market are intensifying.

Citigroup said that weak hiring will lead to higher unemployment in the summer, similar to what has happened in the past few years.

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Editor: Tong Li

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