Another driver of the Fed's policy rate cuts is inflation, with the core PCE price index likely to get closer to the Fed's target in the second quarter. Citigroup expects U.S. GDP to grow at a slower-than-expected pace of just 2.6%, but expects the inflation measure to hit its 2% target for the quarter, a figure that could help solidify a rate cut of just 25 basis points from Fed officials next week.

It'll be interesting to see how the Fed's decision impacts the markets. If the inflation target is met, a rate cut could provide some relief. Let's watch closely how this unfolds.