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

S&P said it expects the FOMC to cut interest rates by 25 basis points at its meeting this week and remain cautious about future easing. The Fed's revised economic forecast is expected to see the federal funds rate reach 3.5%-3.75% by the end of next year, higher than the previous forecast of 3%-3.25%. This adjustment reflects that economic growth is more resilient than previously understood, inflation impulses continue to be excessive, and the upside risks to inflation expectations posed by the policy preferences of the new administration.