The giant company Citi recently released their findings on the expected rate cut by the Fed. The Federal Reserve is seen as likely to lower interest rates by the middle of this year, as US inflation still shows signs of remaining high.
Price increases are expected to be the main focus for the market this week, especially when January's personal spending price data is released on Thursday.
The latest figures show inflation remained high in the economy in January, a prospect that has almost extinguished hopes that the Fed will soon lower interest rates from their highest levels in more than two decades. The central bank previously started a tightening campaign to lower inflation back to the 2% target, but prices are still well above this target.
Meanwhile, in an interview published on Friday, New York Fed President John Williams warned market players to be cautious about the possibility of an early interest rate cut, saying the Fed would cut borrowing costs "this year".
In a note to clients dated Friday, Citi analysts said the cut in June was "their base case."
"Fed members reiterated that interest rate cuts would be done 'carefully' and would continue to closely monitor inflation data."
