Citi Strategists Suggest Fed Should Pause Interest Rate Cuts

Forex - Citigroup Inc. interest rate strategists stated that the Fed should pause its interest rate cuts. Strategists Jabaz Mathai and Alejandra Vazquez said in a report dated November 22 that "the Fed should hold off on easing, except for weak employment data in December, referencing the U.S. employment report for November set to be released on December 6. Even if job creation is weak, other labor market data, such as unemployment claims, can be argued to indicate a resilient labor market." The strategists advised investors to position themselves for the Fed's pause next month by paying the rate on overnight index swap contracts corresponding to the Fed's December interest rate decision.