Key Takeaways Federal Reserve officials are widely expected to cut the central bank's key interest rate next week even as some measures of inflation are still well above the Fed's goal of a 2% annual rate.

The Federal Reserve will probably cut rates next week, but it remains to be seen how much further rates can drop given the macroeconomic context and the prospect for further inflationary policies from the Trump administration.

Citigroup, previously the only Wall Street brokerage forecasting a 50 basis point rate cut by the U.S. Federal Reserve, has now aligned with its peers in expecting a quarter point reduction at the central bank's December policy meeting.