WASHINGTON (Reuters) - Federal Reserve Governor Christopher Waller said on Monday he was inclined to cut the benchmark interest rate at the Dec. 17-18 meeting as monetary policy remained restrictive enough to keep putting downward pressure on inflation, while the labor market was roughly in balance, something the Fed wants to maintain.

"Policy is still restrictive enough that an additional cut at our next meeting will not dramatically change the stance of monetary policy and allow ample scope to later slow the pace of rate cuts, if needed, to maintain progress toward our inflation target," Waller said in comments at a central bank symposium organized by the American Institute for Economic Research.

At the same time Waller said upcoming data on jobs, inflation and consumer spending could still sway him to pause if it appears that progress on inflation is stalling.

"All of that information will help me decide whether to cut or skip. As of today, I am leaning toward continuing the work we have started in returning monetary policy to a more neutral setting" with continued rate cuts, said Waller, who has been a key voice in shaping the Fed's response to inflation that erupted to a 40-year high in 2022.

The Fed began reducing interest rates in September with a half-point reduction, following that with a quarter-point cut in November.

A further quarter-point cut in December has been expected, but recent inflation data raised concern that progress may have stalled. One key measure, the personal consumption expenditures price index stripped of food and energy costs, has been mired in a range from 2.6% to 2.8% since May, well above the Fed's 2% target.

"If the data we receive between today and the next meeting surprise in a way that suggests our forecasts of slowing inflation and a moderating but still-solid economy are wrong, then I will be supportive of holding the policy rate constant," Waller said.

He said rates are also likely to continue falling next year, though the pace and degree of reduction remain to be determined. The Fed will issue new economic projections at its next meeting to show how far officials expect to cut their benchmark rate next year.

The rate is currently set in a range between 4.5% and 4.75%.

"The evidence is strong that policy continues to be significantly restrictive and that cutting again will only mean that we aren't pressing on the brake pedal quite as hard," Waller said. "I expect rate cuts to continue over the next year until we approach a more neutral setting of the policy rate."

Recent data "tells a fairly consistent story over the past year about moderating demand relative to supply, consistent with continued progress toward 2% inflation and without an undesirable weakening in the labor market," said Waller, a fitness buff who compared the Fed's battle with inflation to a mixed martial arts fighter in that sport's unique arena.

"Let me assure you that submission is inevitable - inflation isn't getting out of the octagon," Waller said.