The report follows last Friday's better-than-expected nonfarm payrolls number for November, which was nonetheless viewed as insufficiently strong to incite the Fed to start tapering its massive bond purchases before the New Year.
(CNBC explains: Tapering)
Late on Monday however, St. Louis President James Bullard, a voting member of the central bank's policy committee, said the Fed could slightly reduce its buying program this month in response to the improved labor market.
Meanwhile, Dallas President Richard Fisher said that rising long-term Treasury yields suggested investors were expecting a reduction in stimulus. The speeches came before officials go into their "blackout" period ahead of the two-day Fed policy meeting which starts next Tuesday.
"We feel that in 2014, the Fed is likely to have to walk a fine line between fast tapering — likely causing pockets of economic and financial market weakness — and slower tapering — likely contributing towards bubbles. Overall, we think the Fed, along with other central banks, will be forced to maintain a high level of bond buying in 2014," said Deutsche Bank's Jim Reid and Anthony Ip in a morning research note.
U.S. small business optimism and wholesale inventories are the other major data releases due Tuesday, as well as the federal budget for November.