Citigroup expects Fed rate cuts to start in May (previously saw March)

Citigroup expects Fed rate cuts to start in May (previously saw March)

Citigroup's revised expectation for Fed rate cuts to commence in May, pushed back from March, implies a more cautious outlook on the economy and inflation trends. This adjustment may signal to markets a longer period of elevated rates than previously anticipated, potentially affecting USD strength and impacting cross-asset dynamics, including fixed income. Keep an eye on how this shapes expectations around future Fed guidance and market positioning.