While the Federal Reserve is expected to cut its key interest rate next week, stubborn inflation could pressure the central bank to keep rate cuts few and far between next year.

The market sees the probability of another 25 basis point interest rate cut at next week's Federal Reserve meeting as rising despite inflation ticking higher in November.

With interest rates, for example, some short-term rates have been trending downward, such as with the Federal Reserve starting to cut the federal funds rate. Meanwhile long-term ones such as 10-year Treasuries or 30-year mortgages have remained relatively high or even increased in recent months.