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 a recent speech, Christopher Waller, a member of the Fed Board of Governors, said a rate cut hinged on inflation continuing to drop.

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.

A top official at the US Federal Reserve on Monday said he is leaning towards cutting interest rates when the Fed meets this month, but he is keeping his options open due to recent trends in inflation.