Citigroup economists said in a report that they expect the Federal Reserve to cut interest rates by 25 basis points in November. After the strong September employment data was released by the United States last Friday, some Wall Street banks abandoned their forecast of a 50 basis point rate cut in November.

"Federal Reserve officials are now comfortable with a 25 basis point rate cut in November," Andrew Hollenhorst said in a report; prior to September 19, the day after the 50 basis point rate cut by the Federal Reserve, Citigroup economists confirmed their forecast of a 50 basis point rate cut in November.

However, they still expect labor market data to show signs of weakness in the coming months, with the September data being an outlier.

After Bank of America and JPMorgan changed their forecasts last Friday, Citigroup was the only remaining Wall Street bank forecasting a 50 basis point rate cut in November.