Citigroup has pushed its forecast for the Federal Reserve’s first interest rate cut to June 2027, after US employers added 162,000 jobs in August, far exceeding the 53,000 economists had expected. The Fed followed through by raising its benchmark rate by 25 basis points to a 3.75%-4% target range on September 16, its first hike since July 2023. Bitcoin briefly dropped toward $75,000 after the decision before rebounding past $86,000. US spot Bitcoin ETFs logged $433 million in net inflows on September 18, signaling renewed institutional demand. Citigroup now projects three rate cuts in June, September, and December 2027, extending the timeline for lower borrowing costs by nine months.
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