Citigroup forecasts that a "dovish surprise" from the Federal Reserve is brewing, with core inflation approaching 2% as the key.
Citi believes that if the short-term growth rate of core PCE continues to hover near the 2% annualized level, the tightening path after the September rate hike may shift. The key question is whether the Fed’s previously expected subsequent rate hikes will still materialize, rather than an immediate pivot to rate cuts. Citi economist Andrew Hollenhorst noted in a report that the U.S. economy is not overheated, adding that “we have not seen strong grounds for further rate hikes.” The September mee
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Citi believes that if the short-term growth rate of core PCE continues to hover near the 2% annualized level, the tightening path after the September rate hike may shift. The key question is whether the Fed’s previously expected subsequent rate hikes will still materialize, rather than an immediate pivot to rate cuts. Citi economist Andrew Hollenhorst noted in a report that the U.S. economy is not overheated, adding that “we have not seen strong grounds for further rate hikes.” The September mee
@tonmelonfest