Reuters · October 14, 2026

Citigroup Says It Expects the Federal Reserve to Raise Rates by 25 Basis Points in December

• Citigroup said on Wednesday that it expects the Federal Reserve to raise interest rates by 25 basis points in December, after U.S. consumer inflation data for September came in above expectations, according to the report.
• Citi said it had previously forecast no further Fed rate moves this year, according to the report.
• Citi said it expects the Fed to hold policy rates steady after a December increase and does not expect rate cuts to begin until June 2027, according to the report.
• Rate futures implied a 47.1% chance of a rate hike at the Federal Reserve's October 27 to 28 meeting, up from roughly 22% before the inflation data was released, according to CME Group's FedWatch tool, as reported.

Forecast and market figures are as stated by Citigroup and CME Group's FedWatch tool, as reported by Reuters. No response from the Federal Reserve is documented in the source. This card is based on the accessible portion only. Original headline: "Citi turns hawkish on Fed after inflation surprise, expects December rate hike".