Citi: The Fed isn't as "hawkish" as it looks It is still possible to cut rates five times this year

Citigroup economists firmly believe that almost everyone on Wall Street is wrong about the Fed. After three consecutive months of slightly faster-than-expected inflation, Bank of America, Goldman Sachs, Morgan Stanley and others have lowered their expectations for interest rate cuts this year. Fed Chair Jerome Powell hinted on Tuesday that policymakers are not in a hurry to ease policy. But Citigroup’s Andrew Hollenhorst and Veronica Clark argue that it would be wrong to rush to judgment because the Fed remains concerned that the economy’s unexpectedly strong rise could stall. The duo insisted that there would be five 25 basis point rate cuts this year, and Fed policymakers would not let go of signs of slowing inflation or economic weakness.