Citi Economist Predicts 'Hard Landing' for U.S. Economy, Expects Four Rate Cuts

Citi's chief U.S. economist Andrew Hollenhorst predicts a "hard landing" for the U.S. economy, not a soft landing as many expect, and forecasts the Fed will cut rates four times this year. Recent economic data like weaker-than-expected jobs growth in April signal weaknesses emerging in the labor market. Hollenhorst believes that persistently high inflation will eventually weaken the labor market significantly, potentially resulting in a hard economic landing and interest rate cuts. Hollenhorst has predicted a recession by mid-2024 and says financial markets are moving away from hopes for a soft landing.