Citigroup strategists said that the Fed expects interest rate hikes combined with the risk of stagflation, which may cause market fluctuations, but economic resilience is expected to support the continued rise of the stock market until mid-2027. According to strategists such as David Groman and Beata Manti, a single Fed rate hike will usually not end the stock market. They wrote in the research report: “Based on Citi's internal benchmark judgment, global economic growth is likely to remain resilient. We are still optimistic about the global stock market. Improved profits will drive the stock index to continue to rise.”

Citigroup strategists said that the Fed expects interest rate hikes combined with the risk of stagflation, which may cause market fluctuations, but economic resilience is expected to support the continued rise of the stock market until mid-2027. According to strategists such as David Groman and Beata Manti, a single Fed rate hike will usually not end the stock market. They wrote in the research report: “Based on Citi's internal benchmark judgment, global economic growth is likely to remain resilient. We are still optimistic about the global stock market. Improved profits will drive the stock index to continue to rise.”