PrintCitigroup pushes back Fed rate cut timeline after strong job numbers
BY Reuters | ECONOMIC | 12:51 AM EDTApril 6 (Reuters) - Citigroup has pushed back its Fed rate-cut timeline, citing unexpectedly strong U.S. job gains and persistent inflation risks.?
The Wall Street brokerage now expects a total of 75 basis points of rate cuts in September, October and December instead of June, July and September, according to a note dated April 3.
"We continue to think signs of a weakening labor market will result in cuts later in the year. But the timing of upcoming data suggests a later start to rate cuts than we had previously been expecting," Citigroup said.
U.S. job growth rebounded more than expected in March as a strike by healthcare workers ended and temperatures warmed up, but downside risks for the labor market are mounting from a war with Iran that has no clear end in sight.
Citigroup says weak hiring will push the unemployment rate higher in the summer, similar to the last few years.
(Reporting by Kanishka Ajmera in Bengaluru; Editing by Mrigank Dhaniwala)
