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 isn't ready to say what he thinks should happen at its policy meeting later this month.

A falling-interest-rate environment is generally a positive catalyst for the stock market. Having said that, there are some areas of the stock market that tend to benefit from falling rates more than others.

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.