S & P said it expected the FOMC to cut interest rates by 25 basis points at its meeting this week and was 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, up from its previous forecast of 3% -3.25%. The revision reflects more resilient growth than previously understood, persistently excessive inflationary impulses and upside risks to inflation expectations from the new administration's policy preferences.