Citibank: US Q4 GDP growth forecast revised down to 2.5%

Citibank analysts have revised down their US Q4 GDP growth forecast from 2.9% to 2.5%, thereby potentially bringing forward end of Fed’s balance sheet reduction to as early as June.

Key Quotes

“Citi analysts also warn that US growth differentials to the rest of the world are now in the top quartile historically. History (and Citi forecasts) suggest this may signal the start of some convergence (implying USD underperformance against its G10 peers).”