S&P expects Fed to cut interest rates less frequently next year

S&P expects the FOMC meeting this week to cut rates by 25 basis points and maintain a cautious stance on future easing policies. The revised Fed economic projections are expected to show the federal funds rate reaching 3.5%-3.75% by the end of next year, higher than the previous estimate of 3%-3.25%. This adjustment reflects the economy's growth being more resilient than previously understood, persistent inflationary pressures, and upside risks to inflation expectations from the new administration's policy preferences.