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Citi sees a rosy future for US economy: Interview!
Citi predicts a "Goldilocks scenario" for the U.S. economy, with possible interest rate cuts and equity opportunities by 2026.
Citi sees a rosy future for US economy: Interview!
On October 8, 2025, an insightful analysis was released by Citi that predicts a period of sustained growth in the US economy. According to Scott Chronert, U.S. equity strategist at Citi, the impending scenario of interest rate cuts from the Federal Reserve could bring about a “Goldilocks scenario.” This would be characterized by steady growth, low inflation, low unemployment and stable interest rates, without the threat of recession. Chronert commented on this in an interview with CNBC.
These optimistic prospects also deal with the possible effects on the stock market. Citi notes that three specific stock groups should benefit from these favorable conditions. In order to optimally exploit the potential, the company recommends a “Barbell” strategy that focuses on both growth stocks and cyclical values.
Forecasts for small and medium -sized companies
As part of his forecasts, Chronert emphasizes that small and medium -sized companies could particularly benefit in the coming years. A restriction in profits is expected by 2026, which could result in new opportunities for these companies. This positive development could be promoted, among other things, by general economic stability and growth.
Nevertheless, Chronert also warns of possible setbacks. He points out that the stock market may be overvalued and that the reset is not excluded. According to the experts from Citi, there are high expectations of corporate profits for the third quarter, and they predict a strong annual financial statements.
Stock market in focus
The S&P 500 is currently at 6,664 points. Chronert sees a solid possibility that this index can maintain its upward trend. The upcoming developments in the stock market will be closely watched, especially in view of the impact of interest rate cuts on the general economic situation and corporate profits.
In summary, it can be said that Citi's expectations and strategies offer a promising outlook on economic development in the coming months while caution is required at the same time.
For more information about the forecasts of Citi and its possible effects on the stock market, please visit Daily Hodl.