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.

Inflation in November rose modestly, with housing costs continuing to be a major factor in price increases. However, the Fed is expected to proceed with an interest rate cut next week.

Americans still expect sticky inflation in the coming years. Economists and market commentators across the board expect the Federal Reserve to lower interest rates by 25 basis points on December 18, yet it’s difficult to decipher whether recent economic data justify the move.