The Federal Open Market Committee is most likely to cut interest rates again to 4.25% to 4.5% on December 18 according to fixed income markets.

In short, the Fed is seeing the best of both worlds: an economy growing steadily with inflation headed toward its target, albeit maybe a little slower than had been anticipated. The Fed confirmed this Wednesday when it released its “beige book” survey of the U.S. economy, noting growth in the economy continued although hiring was subdued.

A further quarter-point cut in December has been expected, but recent inflation data raised concern that progress may have stalled. One key measure, the personal consumption expenditures price index stripped of food and energy costs, has been mired in a range from 2.6% to 2.8% since May, well above the Fed's 2% target.

Federal Reserve governor Christopher Waller said he was leaning toward favoring a cut in interest rates at the central bank’s meeting later this month, though he also said he could be open to arguments for holding rates steady.

St. Louis Federal Reserve President Alberto Musalem said on Wednesday he expects the U.S. central bank will be able to continue to cut interest rates but warned the pace of future actions has grown less clear.

Key Takeaways With a Federal Reserve meeting coming up later this month, officials are preparing for a debate over whether to cut their influential interest rates for a third time in a row.Federal Reserve Gov.

Battling the throes of inflation can apparently feel like a full-contact sport. That was the message from Fed governor Christopher Waller during a speech Monday, where he compared the more than two-year fight against inflation to a tiring bout of sparring in a mixed martial arts cage.