Fed Eyes Rate Cut Amid Economic Uncertainty and Election Haze

Citi analysts predict that Federal Reserve Chair Jerome Powell will maintain a dovish stance, leaving open the possibility of either slowing or accelerating rate cuts, amid recent data showing softer inflation and slower job gains. The Fed is expected to implement a 25 basis point rate cut at its upcoming meeting, with future cuts dependent on labor market data. Powell is likely to emphasize that monetary policy will respond to macroeconomic developments rather than political events, and the Fed is expected to continue its balance sheet reduction into 2025.