Federal Reserve Governor Christopher Waller said on Monday he was inclined to cut the benchmark interest rate at the Dec. 17-18 meeting as monetary policy remained restrictive enough to keep putting downward pressure on inflation,

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.

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.

Two Federal Reserve policymakers on Tuesday said they believe inflation is heading down to the U.S. central bank's 2% target and the job market is "solid," even as neither gave any clear steer on whether they'll support another interest rate cut later this month.

Federal Reserve Governor Christopher Waller said Monday that as of today, he supports an interest-rate cut at the central bank’s next meeting in a little over two weeks.

Consumer inflation accelerated in October 2024. However, the odds of a Federal Reserve interest rate cut on December 18 are still high.

The labor market, while slowing, remains resilient. Initial claims – an established predictor of changes in the level of unemployment – have been trending downward. The four-week moving average of initial claims has been falling since Oct.

Inflation rose above the European Central Bank’s target in the eurozone this month, though likely not enough to deter policymakers from cutting interest rates for a third straight meeting next month.