“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.

Investors widely expect a third-in-a-row rate cut this week. Officials are ready to slow—or even stop—lowering rates after that.

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