St. Louis Federal Reserve President Alberto Musalem said on Wednesday he expects the U.S. central bank will be able to continue to cut interest rates but warned the pace of future actions has grown less clear.

Federal Reserve Bank of St. Louis President Alberto Musalem said it may be time for policymakers to slow the pace of interest-rate cuts amid higher than desired inflation and declining concerns over the labor market.

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.

Rate cuts, while providing temporary relief, have also created conditions that now exacerbate inflation's persistent increase.

The last two Fed meetings resulted in rate cuts. Short-term CD rates have continued to lower, but some long-term CD rates are rising back up again.

By Howard Schneider WASHINGTON (Reuters) -Federal Reserve Governor Christopher Waller said on Monday he was inclined toward a cut in the benchmark interest rate at the central bank's Dec. 17-18 meeting as policy remained restrictive enough to keep putting downward pressure on inflation,

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."

When accounting for the various policies, Deutsche Bank estimates the US economy will grow at an annualized rate of 2.5% in 2025, with the rate of unemployment ending the year at 3.9% (down from 4.1% currently) and the Fed's preferred inflation gauge, "core" Personal Consumption Expenditures (PCE), ending 2025 at 2.6%.

Two Federal Reserve policymakers on Tuesday said they believe inflation is heading down to the U.S. central bank's 2% target and the job market is "solid," even as neither gave any clear steer on whether they'll support another interest rate cut later this month.

Federal Reserve Bank of St. Louis President Alberto Musalem sees a risk that progress toward 2% inflation could stall, or possibly reverse.