Citigroup now expects a Fed rate hike in December 2026
As seen on the 24/7 Wall St. homepage on October 14, 2026.
Citigroup just flipped from no change this year to a 25 basis point December hike, which puts another leg of pressure on bonds and rate-sensitive equities before year end.
CITIGROUP EXPECTS US FED TO DELIVER A 25 BP RATE HIKE IN DECEMBER 2026 VS PRIOR FORECAST OF NO CHANGE THIS YEAR
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Citigroup now calls for a 25 basis point Fed rate hike in December 2026 after previously forecasting no change for the year, a meaningful pivot from one of Wall Street's largest banks.
A shift of this kind from no change to an active hike puts fresh pressure on bonds, as higher expected rates push prices lower. Rate-sensitive corners of the equity market, including utilities and real estate, typically feel that pressure quickly as the calendar moves toward a projected decision date.
For investors, the timing matters as much as the call itself. October is early enough that positioning can still adjust, but December is close enough that the window to act narrows with each week of inaction.