📰 FED EXPECTED TO BE EVEN MORE HAWKISH THAN OFFICIALS INDICATE Fed officials have projected inflation not reaching the central bank’s 2% target before 2027 and they expect interest rates to be cut only twice next year. However, a potential resurgence of inflation could not only limit the Fed’s ability to continue the rate-cutting cycle, but even drive it to raise rates, ITR Economics’ Lauren Saidel-Baker writes. CME data show markets are mostly pricing a Fed hold until May, with the possibility of only one cut in 2025.