Citi Now Expects Fed Rate Hike in December, Keeps 2027 Cut Forecast

Citi's shift matters less as a forecast than as a signal that a December hike is no longer a fringe view, which can reprice rate-sensitive corners of crypto and tokenized real assets before the Fed itself moves. The split call — near-term tightening, cuts later — suggests the bank sees the current inflation impulse as temporary rather than a regime change. Whether other sell-side desks follow Citi in adding a December hike is the open question.