Federal Reserve Governor Christopher Waller said recent economic data shows the Fed should ease more cautiously after last month's jumbo rate cut.

Citing recent data showing an uptick in inflation and a U.S. economy and labor market that are stronger than previously thought, Federal Reserve Governor Christopher Waller on Monday called for "more caution" on interest-rate cuts ahead.

Market participants predict there is a 92% chance the committee will initiate a quarter-point cut at the November meeting and an 84% they will do so again at the December meeting, according to the CME FedWatch Tool that tracks trading in the 30-day fed funds futures.