Citigroup Delays Fed Rate Cut Forecast by One Month as Hawkish Dot Plot Shifts Market to Bet on Hikes

Citigroup pushed back its Fed rate cut timeline by one month, now expecting cuts in October, December 2026 and January 2027. The Fed's June dot plot median jumped from 3.4% to 3.8%, hinting at a possible hike, with CME showing a ~60.7% probability of a hike in October.