Citi Delays Fed Rate Cut Forecast To June 2027 After Strong Jobs Data

Citigroup pushed its forecast for the Federal Reserve's next interest-rate cut to June 2027, a revision triggered by stronger-than-expected US jobs data that signals persistent economic resilience and keeps borrowing costs elevated for longer, according to the bank's updated outlook. The move extends the timeline for relief in rate-sensitive assets, including Bitcoin and the broader cryptocurrency market, which have traded under pressure as higher-for-longer monetary policy reduces speculative liquidity.

Citi's revised projection marks a significant departure from earlier expectations, when the bank had anticipated the Fed would begin easing policy sooner, though the specific prior date and the magnitude of the expected cut were not detailed in the announcement. The revision follows a US jobs report that showed robust labor-market strength, a key input for Fed policymakers weighing inflation risks against employment stability.

For crypto traders, the extended timeline implies that the cost of capital will remain restrictive well into 2027, potentially dampening appetite for risk assets that thrived during the low-rate era of 2020-2021. Bitcoin, which has historically shown sensitivity to Fed policy expectations, could face sustained headwinds as investors recalibrate portfolios around a later easing cycle.

The Fed has held its benchmark rate steady in recent meetings, with Chair Jerome Powell emphasizing a data-dependent approach. The next Federal Open Market Committee meeting, scheduled for later this month, will offer further clarity on the policy trajectory, though no rate change is widely expected.