Citigroup Shifts Rate Cut Forecast, Joins Stablecoin Initiative

Citigroup has revised its forecast for interest rate cuts by the Federal Reserve, pushing back the first cut from October 2026 to June 2027. The bank now expects three rate cuts in 2027, citing strong U.S. jobs data as a contributing factor.

Additionally, Citigroup is joining 20 other banks to launch a new stablecoin, pegged to the value of the US dollar and backed by reserves. The initiative aims to make cross-border payments more efficient and secure, with a target launch date in the first half of 2027.

The bank has already run live cross-border payment pilots on SWIFT's blockchain ledger from July to December 2026, in collaboration with FAB and OCBC. This pilot is set to expand to DBS and UOB in September 2026.