Did other banks change their forecasts after the jobs data?

Yes, most analysts revised their expectations after the strong jobs data, but Citigroup has not.

Why does Citigroup stick to its forecast despite strong data?

Citigroup's team believes an anticipated economic slowdown will force the Fed to cut rates, despite current labor market strength.

Citigroup Economists Stick to Fed Rate Cut Forecast Despite Jobs Data

Citigroup economists are holding onto their prediction of three Fed rate cuts this year despite strong jobs data, making them an outlier among analysts.

June 5, 2026

2 min read

Source: Bloomberg

Key Numbers

rate cuts predicted

Citigroup Economists Stick to Fed Rate Cut Forecast

Despite strong US jobs data released Friday, economists at Citigroup Inc. (C) are maintaining their increasingly lonely call that the Federal Reserve will cut interest rates three times this year.

Details of the Forecast

According to a Bloomberg report, the Citigroup economics team continues to project three rate cuts in 2026, even as robust employment figures could prompt the Fed to hold steady. This stance puts them at odds with most analysts who have revised their expectations post-data.

Context

The forecast comes as investors await upcoming Fed meetings. Labor market data suggests economic strength, potentially reducing the need for additional stimulus. However, Citigroup's team believes an anticipated economic slowdown will force the Fed to act.

What It Means for Investors

The monetary policy outlook remains uncertain, with divergent views among banks. Investors are advised to monitor upcoming economic data for clearer signals on the rate path.

Frequently Asked Questions

Citigroup economists expect three rate cuts in 2026.

Found this useful? Share it

This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.