Markets are still pricing in another cut in interest rates of 25 basis points when the Fed meets in two weeks. Unless things change or economic data – such as Friday’s monthly jobs report for November – defies expectations, the Fed’s slow but steady shift downward on interest rates is likely to continue.

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.

Private-sector hiring continues to slow, but workers are finding pay increases for remaining in their current positions.

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.

With a Federal Reserve meeting coming up later this month, officials are preparing for debate over whether it's time to reduce interest rates again, with some wanting to see more data before committing to another cut.

"At present, I lean toward supporting a cut to the policy rate at our December meeting," Christopher Waller, a Federal Reserve governor, said Monday.

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.

The U.S. appears on track to hit its long-term target of two percent inflation despite a recent uptick, three Federal Reserve officials said Monday, with one indicating tentative support for another rate cut this month.