Citigroup forecasts the Federal Reserve will maintain interest rates unchanged at both its October and December meetings following a recent 25 basis point hike. The bank expects core inflation to show moderate month-over-month increases in coming months, providing sufficient evidence of cooling price pressures to justify an extended pause in policy adjustments. Citi projects the Fed will resume rate cuts in June 2027 as inflation continues to decline. The bank notes that recent labor market stability stems from falling participation rates rather than accelerating demand, suggesting officials will await further data to assess the impact of the latest rate increase before considering additional moves.