U.S. central bankers on Tuesday said they continue to believe inflation is heading down to their 2% target and signaled support for further interest rate cuts ahead, but none pushed strongly for or against doing so when they next meet to set rates in two weeks.

A top Federal Reserve official said Monday that he is leaning toward supporting an interest rate cut when the Fed meets in two weeks but that evidence of persistent inflation before then could cause him to change that view.

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 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,

Federal Reserve Bank of San Francisco President Mary Daly said an interest-rate cut this month isn’t certain but remains on the table for policymakers.

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.

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.

Federal Reserve Governor Christopher Waller said Monday he is anticipating an interest rate cut in December but is concerned about recent trends on inflation that could change his mind.