Citigroup: The Federal Reserve may cut interest rates by 50 basis points in November and December respectively

Citigroup economists gave up their prediction of a 50 basis point rate cut from the Fed at next week's meeting, instead expecting a 25 basis point cut and maintaining expectations for a total of 125 basis points of rate cuts this year. Economist Andrew Hollenhorst wrote in a report that Wednesday's August CPI data "may only be enough to convince the FOMC to cut interest rates by 25 basis points at next week's meeting, rather than 50 basis points." However, the labor market "will still be the most concerning issue for policymakers," and we still expect a total of 125 basis points of interest rate cuts this year, with 50 basis points cut in November and December respectively. Citigroup previously predicted 50 basis point rate cuts at the September and November meetings and a 25 basis point cut in December. (Jin10)