Citigroup: Maintains its forecast for the Fed's rate cut this year at 125 basis points

Citigroup maintained its forecast for the Fed to cut interest rates this year at 125 basis points. In addition, the bank expects more 25 basis point cuts in 2025, pushing the terminal rate to a range of 3%-3.25%. Other Wall Street investment banks, including Macquarie and Deutsche Bank, have retained their expectations of two more 25 basis point cuts from the Fed this year. The Morgan Stanley team, including economist Seth Carpenter and strategist Matthew Hornbach, said officials may choose to implement a series of conventional rate cuts (25 basis points) by mid-2025, two cuts this year and four cuts in the first half of next year. (Jinshi)