Citi Maintains Three Fed Rate Cuts Forecast for 2026, Standing Alone on Wall Street

Friday, Citi's chief U.S. economist Andrew Hollenhorst maintained the bank's forecast for three Federal Reserve rate cuts in 2026 (September, October, and December), despite strong May employment data that has left the prediction increasingly isolated. Hollenhorst noted that May's jobs report will likely keep Fed officials focused on inflation risks at their June 16–17 meeting, but he expects the labor market to weaken over the coming three months, prompting a shift in market pricing toward rate cuts.
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