Citi sees U.S. rate cuts in September, December

(Reuters) - A Citi currency strategist said on Friday he expects the U.S. Federal Reserve to reduce key U.S. borrowing costs by 50 basis points in September, followed by a 25 basis-point rate cut in December.

There is a "material risk" of a 25 basis-point rate decrease at the Fed's July policy meeting and "maybe a premature end" of its balance sheet runoff in June, due to a challenging global environment and sluggish domestic inflation, Citi FX strategist Ebrahim Rahbari wrote in a research note.

(Reporting by Richard Leong; Editing by Chizu Nomiyama)

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