Brokerage Delays Rate Cuts to September-December
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- An unnamed Wall Street brokerage revised its rate cut forecast to 75 basis points spread across September, October, and December, according to a note dated April 3.
- The brokerage's prior timeline had called for 75 basis points of cuts in June, July, and September — a shift that pushes the expected start roughly three months later.
- Citigroup said signs of a weakening labor market will result in rate cuts later in the year.
- Citigroup added that the timing of upcoming data suggests a later start to rate cuts than it had previously been expecting.
Why it matters: The brokerage's shift from a June–September cut window to September–December extends the wait for the rate-cutting cycle to begin; Citigroup's flagging of the labor market gives investors a specific data trigger to watch before cuts commence.
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