Citi Research analysts are predicting a series of rate cuts by the Federal Reserve starting in September and continuing into the summer of 2025. The cuts, totaling 200 basis points, are in response to signs of a slowing economy and rising risks indicated by recent economic data. The analysts point to factors such as a decline in service-sector activity, rising unemployment, and weaknesses in the jobs report as reasons for the Fed to take action. Citi's chief U.S. economist, Andrew Hollenhorst, has been consistent in his cautious outlook on the economy, warning of a potential hard landing. He suggests that a severe recession may prompt more government spending to stimulate the economy, but milder economic downturns may not see the same response. With bond yields already low and limited room for further decrease, questions remain about how effective these rate cuts will be in boosting economic activity.