Citigroup has lowered its expectations for an interest-rate cut at the U.S. Federal Reserve's December meeting, joining peers in predicting a 25-basis-point reduction, following robust nonfarm payrolls data.

The Federal Open Market Committee is most likely to cut interest rates again on December 18 to 4.25% to 4.5%, according to fixed income markets.

The conventional wisdom among economists and traders is that the Federal Reserve is going to cut its benchmark interest rate by another quarter of a percentage point on Dec. 18, and then pause at its first meeting in 2025.