It's still likely the Fed will issue its first rate cut this June, Citi economist Veronica Clark said.
That's because central bankers will need to support a weakening labor market, Clark told Yahoo Finance.
AdvertisementThe Federal Reserve is still likely to cut rates in June in order to prop up the labor market amid a slowdown in hiring, according to Citi economist Veronica Clark.
"We have a base case for June still," Clark said of rate cuts, though she noted a July Fed rate cut was also possible.
Markets are now pricing in just one or two cuts by December, according to the CME FedWatch tool, down from as many as seven rate cuts projected at the start of 2024.
Persons:
It's, Veronica Clark, Clark, —, That's, Powell
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Citi, Yahoo Finance, Service, Bureau of Labor Statistics —
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