US authorities bet on three 50 bps interest rate cuts this year, according to Citigroup traders.
Last updated on September 6, 2024, 20:30 JST (partial excerpt).
The trading desk's view is more optimistic than Citi's economists.
The swap market is currently factoring in a cut of around 100 bps by the end of the year.
Traders at Citigroup are betting that the Federal Reserve will cut interest rates by 0.5 percentage points three times this year, exceeding the expectations of the bank's economists and the market.
The short-term interest rate trading desk at Citi believes that the Federal Reserve will take aggressive easing measures if the labor market weakens. The market is assuming a rate cut of about 100 basis points by the end of the year. Citi economists expect rate cuts of 0.5 percentage points in September and November, and a cut of 0.25 percentage points in December, starting from August 2nd.
The trading desk's view is more optimistic than Citi's economists.
The swap market is currently factoring in a cut of around 100 bps by the end of the year.
Traders at Citigroup are betting that the Federal Reserve will cut interest rates by 0.5 percentage points three times this year, exceeding the expectations of the bank's economists and the market.
The short-term interest rate trading desk at Citi believes that the Federal Reserve will take aggressive easing measures if the labor market weakens. The market is assuming a rate cut of about 100 basis points by the end of the year. Citi economists expect rate cuts of 0.5 percentage points in September and November, and a cut of 0.25 percentage points in December, starting from August 2nd.
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