The U.S. Federal Reserve is expected to ease its policy again by the end of the year and keep rates steady in 2020, following a 25-basis-point cut at its September meeting, S&P Global Ratings said.
In a divided decision, Fed officials lowered the bank's benchmark interest rate to a new target range of 1.75% to 2% on Sept. 18, easing policy for the second time this year to stave off worries about a potential slowdown.
S&P Global Ratings expects a third rate cut in December in contrast to the Fed dot plot median Fed funds forecast, which projects rates to remain on hold through next year.
The rating agency noted that its forecast is contingent upon incoming economic data and assumes a further global growth slowdown due to increased geopolitical and trade tensions.
"The Fed would likely remain on the sidelines in December" if the U.S. cancels tariffs on Chinese goods and the trade dispute with the EU is resolved, the rating agency said.
