Former Cleveland Fed President Mester said the pace of the Fed's rate cuts next year will be influenced by fiscal policy and may not be as frequent as assumed or expected in September. Mester pointed out that the Fed's outlook will change with the incoming Republican administration's fiscal plans, and that the market may have correctly predicted that there will be fewer than four rate cuts previously expected. "Next year, the pace of rate cuts will be influenced by fiscal policy," economists polled by Reuters also expect a 25 basis point cut at the December 2024 meeting. That would bring the federal funds rate down to 3% to 3.25% by the end of 2025, slightly lower than the Fed's median "dot plot" forecast.