A top policymaker at the U.S. Federal Reserve said Wednesday that he still supports cutting interest rates this year, despite elevated inflation and the prospect of widespread tariffs under the incoming Trump administration.

The Federal Open Market Committee is highly likely to hold interest rates at their current level at their next meeting, but cuts later in 2025 remain on the table.

Federal Reserve officials have been signaling that further interest rate cuts are on hold for now given slowed progress on inflation and a still-strong U.S. economy, but minutes from the central bank's December meeting may show just how deeply that sentiment is shared among policymakers facing a newly uncertain economic environment under the incoming Trump administration.

I believe the Fed will cut interest rates a little more aggressively than the market expects. Companies in the financial services and real estate sectors could be particularly big beneficiaries. EPR Properties and SoFi are two that could be big winners -- if I'm right.

The Fed is expected to cut interest rates in 2025, perhaps two or three times, with greater uncertainty for the second half of the year.

The next Federal Reserve meeting is unlikely to deliver a fourth straight rate cut. When will the next rate cut come, and why does it matter for the S&P 500?