Citigroup expects 75 bps of Fed rate cuts next year

Dec 18 (Reuters) - Citigroup said on Thursday it expects the U.S. Federal Reserve to cut interest rates by 25 basis points in September 2026.

"We are including an additional 25 bps rate cut in September, assuming labor market data looks weaker over the summer and to reflect the increased capacity for the Fed under a new chair to cut," the Wall Street brokerage said.

Citi expects a total of 75 bps of cuts next year, as it maintained its forecast for reductions in January and March.