Citi analysts said in a recent note that they believe the weakening in labor market data will lead to 125bp of cuts this year.
Following the dovish FOMC meeting, Citi said it increased their confidence that Fed officials were prepared to begin reducing policy rates in June.
The investment bank wrote, "Even if activity data hold up and inflation remains closer to 3% than 2%, the Fed would likely cut 75bp this year."
They believe that an "overly-optimistic" 4% year-end Fed unemployment rate projection sets a low bar for "disappointing" labor market data that "could prompt more or larger cuts."
"While Chair Powell claimed that data do not show signs of a weakening labor market, analysts have a less sanguine view of data like the falling hiring rate," added Citi. "We continue to expect rate cuts to begin in June and that a clearer weakening in labor market data will lead to 125bp of cuts total for this year."