Citi: Expects the Fed to keep rates unchanged in October and December, and to resume rate cuts in June 2027

Citi expects the Fed to keep rates unchanged in October and wait for more data to assess the impact of a 25-basis-point hike in the policy rate, then hold steady again in December, when a run of softer inflation readings should provide sufficient evidence that inflation is slowing, supporting another hold by the Fed. As inflation continues to cool, Citi expects the Fed to resume rate cuts in June 2027.