The U.S. Federal Reserve will cut interest rates by 25 basis points on Dec. 18, according to 90% of economists polled by Reuters, with most expecting a pause in late January amid concerns about rising inflation risks.

For many investors, Friday's jobs report confirmed expectations that the Federal Reserve is on track to cut interest rates

The conventional wisdom among economists and traders is that the Federal Reserve is going to cut its benchmark interest rate by another quarter of a percentage point on Dec. 18, and then pause at its first meeting in 2025.

Citigroup, previously the only Wall Street brokerage forecasting a 50 basis point rate cut by the U.S. Federal Reserve, has now aligned with its peers in expecting a quarter point reduction at the central bank's December policy meeting.