What gives? Some economists say Fed officials could be making a blunder that risks reigniting inflation and undercutting their pledge to rely on the latest data when making rate decisions. Start the day smarter. Get all the news you need in your inbox each ...

“We look for the (Fed) to reduce the fed funds rate by 25 bps while simultaneously emphasizing that future rate cuts will be slower-going and data dependent,” said Sam Bullard, managing director and for Wells Fargo’s corporate and investment banking group.

Federal Reserve officials are likely to slow the pace of rate cuts in 2025, which would keep borrowing rates higher for longer.