Citigroup shifts Fed rate-cut call to October 2026 as policymakers turn more hawkish

Citigroup has delayed its expected start of U.S. Federal Reserve rate cuts to October 2026, citing a more hawkish tilt among officials and rising inflation concerns. New Fed Chair Kevin Warsh began his tenure with a broad policy review as nearly half of policymakers now anticipate rates could rise this year. Traders have fully priced in a 25basispoints hike by October. Oil prices have pulled back after Iran and the U.S. agreed to restore flows through the Strait of Hormuz, though uncertainty over the deal remains.