Citi predicts recession

Citi says investors should expect a recession in 2024Some banks are expecting a “golden lock” scenario in 2024, but Citi said it’s not that optimistic. The Wall Street firm expects the recession to begin in the second quarter of next year. “Early signs suggest that the rapid increases in policy rates over the past two years — and the need to keep them at that level to curb inflation — will lead to a recession next year,” Andrew Hollenhorst wrote in a note on Wednesday. “Even accounting for the recession, core inflation is likely to remain ‘sticky’ above the 2% target for the full year of 2024. In our baseline scenario, the Fed will cut interest rates by 100 basis points next year, starting in July,” the note added.