"Inflation is stuck above target and risks are skewed to the upside. Economic activity is robust. We see little reason for additional easing."

Before the strong December jobs report was released, the odds were already low for an interest rate cut in the next Federal Reserve decision on January 29.

The U.S. job market again defied an anticipated slowdown, with firms adding more than a quarter of a million jobs in the last full month of Joe Biden's presidency and leaving Federal Reserve policymakers to puzzle over the need for more interest rate cuts in a strong economy.

St. Louis Fed President Alberto Musalem suggests greater caution is warranted on reducing interest rates.

Federal Reserve officials in December signaled concerns over president-elect Donald Trump’s policies potentially stoking inflation, contributing to a more-cautious approach to interest-rate cuts this year and even a pause this month.

Philadelphia Federal Reserve President Patrick Harker said on Thursday he still expects the U.S. central bank to cut interest rates, but added that any sort of imminent move down isn't needed amid considerable uncertainty over the economic outlook.

But minutes from their December meeting suggest that the decision was a close call — and that there is no guarantee policymakers will lower rates again anytime soon. The minutes of the central bank’s Dec.

A top policymaker at the US Federal Reserve says that he still supports reducing interest rates this year, despite elevated inflation and the prospect of widespread tariffs.

Minutes suggest that Fed policymakers were already returning to the data-dependent mindset in the face of the incoming Trump administration. Now investors can only wait and hope.