Citi Pushes Back Fed Rate Cut Forecast Amid Stronger Jobs Data

Citigroup has pushed back its forecast for the Federal Reserve's first interest rate cut to June 2027, in response to stronger-than-expected US jobs data. The change comes after a jobs report that saw employers add 162,000 jobs in August, more than triple the 53,000 economists had forecast.

The Fed raised its benchmark rate by 25 basis points on September 16, 2026, and 16 of 18 officials expect at least one more increase before year-end. This has created a headwind for cryptocurrencies like Bitcoin, as they don't generate interest and become less attractive compared to yields on Treasury securities.

Citigroup's revised forecast replaces earlier calls for rate cuts in October and December 2026 and January 2027. The bank now expects cuts in June, September, and December 2027, with the first cut expected roughly nine months after the September hike.