Markets widely expect the Federal Reserve to cut interest rates for the fourth time this year at its December meeting. The question is what the central bank will do next year. Recent sticky inflation prints and evidence the US economy is growing at a solid pace have raised doubts that the Fed will bring down rates as quickly as it previously

Federal Reserve officials expressed confidence that inflation is easing and the labor market is strong, allowing for further interest rate cuts albeit at a gradual pace, according to minutes from the November meeting released Tuesday.

Federal Reserve Bank of Minneapolis President Neel Kashkari, typically on the hawkish end of the U.S. central bank's policy spectrum, said on Monday he is open to cutting interest rates again next month.

Powell just a week after the meeting said the economy was "not sending any signals that we need to be in a hurry to lower rates."

"Unemployment is going to come down, growth is going to come up, inflation is going to come up," Deutsche Bank's chief US economist said.

Federal Reserve Governor Lisa Cook said the timing of further interest-rate cuts will depend on coming data, leaving the central bank’s decision at its December meeting uncertain.

The Federal Reserve’s November minutes have revealed cautious optimism among investors. Inflation is easing, and the labor market seems to be holding strong which has set up a stage for gradual rate cuts.