Fed Rate Hike Risks: Citi Research Draws Parallels to 1989

Citi Research suggests the current macroeconomic environment, characterized by economic resilience and persistent inflation, mirrors the 1988-1989 period when the Federal Reserve raised rates 16 times. Analysts note that while the Fed is expected to hike rates, the primary concern remains the long-term trajectory of monetary policy amid signs of economic overheating.