Citi analysts predict that the Federal Reserve will implement a total of 200 basis points in rate cuts over the next eight meetings, beginning in September.

The CME Fedwatch Tool suggests a high likelihood of a 25bps cut, with minimal expectations for a 50bps reduction.

Despite this outlook, nearly a quarter of observers anticipate no changes during the upcoming September FOMC meeting.

Citi forecasts a reduction in the federal funds rate from the current 5.25%-5.5% range to approximately 3.25%-3.5% by summer 2025, attributing this to sluggish economic growth.

Federal Reserve Chair Jerome Powell, however, emphasised during a Congressional hearing the necessity for further evidence of sustained inflation progress before endorsing rate cuts, highlighting the cautious stance of the central bank amid evolving economic indicators.