Policymakers emphasized that policy is not on a preset path, and will need to evolve in response to the data and enacted policies of the new administration.

Federal Reserve officials saw risks of higher-than-expected inflation, due in part to potential tariffs by President-elect Donald Trump, when they made a “finely balanced” decision last month to lower interest rates,

And there’s much higher risk of a 2022-like, policy-related stock market pullback than many are bracing for, according to the chief economist of asset manager Apollo.

Fed releases minutes from its December meeting, where it policymakers signaled a slower pace of interest-rate cuts in 2025.

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.

The economy has been running hotter than expected lately, raising the possibility that the Federal Reserve will hold interest rates higher for longer, and may not even cut interest rates in 2025 as policymakers had predicted.

The Federal Open Market Committee is highly likely to hold interest rates at their current level at their next meeting, but cuts later in 2025 remain on the table.

WASHINGTON (AP) — A top policymaker at the U.S. Federal Reserve said Wednesday that he still supports cutting interest rates this year, despite elevated inflation and the prospect of widespread tariffs under the incoming Trump administration.

After a quarter-point cut in December, Chairman Jerome Powell said policymakers may be more cautious, since the incoming administration will create more uncertainty.