Citigroup: Fed may cut interest rates by 50 baz puan in November and December respectively

Odaily Planet Daily News Citigroup economists have abandoned their forecast of a 50 basis point rate cut by the Federal Reserve at next week's meeting and are now expected to cut interest rates by 25 basis points at the meeting, while maintaining their expectations for a total interest rate cut of 125 basis points this year. Economist Andrew Hollenhorst wrote in a report that August CPI data released on Wednesday "may only be sufficient to persuade the FOMC to cut interest rates by 25 basis points at next week's meeting, not 50 basis points." However, the labor market "will still be the most important issue for decision makers," and we still expect interest rates to be cut by 125 basis points this year, with 50 basis points each in November and December. Citigroup previously predicted 50 basis point rate cuts at the September and November meetings and 25 basis point rate cuts in December. (Jinshi)