Woofun AI reports that Citigroup has recalibrated its Federal Reserve interest rate projections, extending the anticipated timeline for monetary easing by one month. The bank now anticipates rate reductions in October and December 2026, followed by an additional cut in January 2027, marking a departure from its previous baseline of consecutive cuts beginning in September 2026.

This adjustment underscores a more hawkish posture among policymakers. In its latest assessment, Citigroup highlighted that while Warsh did not explicitly state it, officials likely believe the dot plot would reflect lower projections if they had more time to analyze the recent sharp decline in oil prices.