Citigroup has pushed back its Fed rate-cut timeline, ​citing unexpectedly ⁠strong U.S. job gains and persistent ‌inflation risks.

The Wall Street brokerage now ​expects a total of 75 basis points of ​rate cuts in ​September, October and December instead of June, July and September, according ⁠to a note dated April 3.

"We continue to think signs of a weakening labor market will result in ​cuts ‌later in ⁠the year. ⁠But the timing of upcoming data suggests a ​later start to ‌rate cuts than we ⁠had previously been expecting," Citigroup said.

U.S. job growth rebounded more than expected in March as a strike by healthcare workers ended and temperatures warmed up, but downside risks for the labor market are mounting from ‌a war with Iran that has no ⁠clear end in sight.

Citigroup ​says weak hiring will push the unemployment rate higher in the summer, ​similar to ‌the last few years.

(Reporting ⁠by Kanishka Ajmera ​in Bengaluru; Editing by Mrigank Dhaniwala)