Morgan Stanley and Citigroup Raise Fed Rate-Cut Forecasts to 2026
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 10 2026- Rate-Cut Expectations Raised: Morgan Stanley and Citigroup have both raised their 2026 rate-cut forecasts to at least 50 basis points, reflecting concerns over weakening economic momentum and potential changes in Federal Reserve leadership, prompting a reassessment of the pace at which monetary policy may shift.
- Morgan Stanley's Cautious Forecast: Morgan Stanley now expects to implement a total of 50 basis points of easing through two 25-basis-point cuts in June and September 2026, indicating a cautious approach amid accumulating signs of slower growth despite near-term inflation dynamics.
- Citigroup's Aggressive Stance: Citigroup projects a more aggressive 75 basis points of cuts in 2026, with reductions of 25 basis points planned for March, July, and September, signaling greater concern about growth risks and confidence that inflation pressures will ease enough to allow for earlier action.
- Market Consensus Shift: Beyond Morgan Stanley and Citigroup, major banks like Goldman Sachs and Bank of America are also projecting a cumulative 50 basis points of rate cuts in 2026, indicating a notable shift in market consensus towards easing monetary policy, which marks a significant change in expectations for future economic policy.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
