Citi Trims Fed Bet for 2024, Still Sees Multiple Rate Cuts (1)

Citigroup Inc. dialed back expectations for Federal Reserve interest-rate reductions on Friday, while remaining among the most dovish forecasters on Wall Street.

Following the release of an inflation gauge that increased more than the bank’s economists expected, they predicted 100 basis points of Fed easing this year beginning in July, compared with a previous forecast of 125 basis points beginning in June.

Forecasters at most other banks had already abandoned calls for Fed rate cuts before the second half of the year, with some — including those at Bank of America Corp. and Deutsche Bank AG — looking for a ...