Citi said the Federal Reserve is unlikely to raise its benchmark interest rate again this year.

According to Odaily and other outlets on September 24, Citi expects the Fed to leave rates unchanged in October while monitoring additional economic data. The bank said the move would allow policymakers to assess how this month's rate increase — the first in three years and two months — affects the U.S. economy and inflation.

Citi also expects the Fed to hold rates steady at its December Federal Open Market Committee meeting. Even if upcoming inflation data continues to show a gradual cooling trend and supports slower inflation, the bank expects the Fed to maintain its hold rather than shift monetary policy immediately.

Citi said the Fed could resume rate cuts as early as June 2027 if inflation continues to ease.