While some analysts see a pause in the Fed's rate cutting cycle, Apollo's chief economist thinks the Fed could shock markets with a rate hike next year.

“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.

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