Citi Pushes Fed Rate Cut Forecast to 2027

The forecast shift signals that one major bank sees the Fed holding rates steady for an extended period, which could reinforce tighter financial conditions for longer. This matters for markets pricing in near-term easing, as it adds weight to the view that inflation or policy risks remain unresolved. The key watch is whether other institutions follow suit, as a broader consensus shift could recalibrate rate expectations across assets.