Citigroup Delays Fed Rate Cut Forecast to 2027 Following Strong Jobs Data

Citigroup has pushed its forecast for the first Federal Reserve interest rate cut to June 2027 after August payroll data showed 162,000 new jobs, significantly exceeding expectations. The revision, which also accounts for upward adjustments to previous months, suggests a stable labor market that may keep interest rates elevated. Following the report, the probability of a September rate hike rose from 52% to 61%, impacting Bitcoin prices. On September 16, the Fed raised the benchmark rate by 25 basis points to a 3.75%-4% target range, with most officials signaling further increases.