S&P expects fewer Fed rate cuts next year

S&P said it expects the FOMC to cut rates by 25 basis points at this week's meeting and is cautious about future easing. The Fed's revised economic projections are expected to see the federal funds rate reach 3.5-3.75 per cent by the end of next year, up from a previous estimate of 3-3.25 per cent. This adjustment reflects the fact that economic growth is more resilient than previously understood, the persistent excess of inflationary impulses, and the upside risks to inflation expectations posed by the policy preferences of the new administration.