Citigroup predicts the Federal Reserve will maintain interest rates unchanged in both October and December. The bank expects the central bank to pause in October to assess the impact of a prior 25 basis point rate hike while awaiting further economic data. By December, Citigroup anticipates that a series of moderate inflation readings will provide sufficient evidence of cooling price pressures to justify another hold. With inflation continuing to ease, the firm projects the Fed will resume rate cuts in June 2027.