The central bank cut rates last month but saw risks of somewhat firmer price pressures this year due to potential tariff increases by President-elect Trump.

Federal Reserve officials debated the staying power of inflation at the central bank’s December meeting, with a range of views on where interest rates could settle in 2025. Policymakers emphasized that policy is not on a preset path and will need to evolve in response to both economic data and the new administration’s policies.

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.

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.

Powell is admitting that inflation is still too high, but the Fed still plans to cut interest rates by .25%. So why are mortgage rates going up? Read more

Federal Reserve Governor Christopher Waller said he believes inflation will continue to cool toward the central bank’s 2% target, prompting his support for additional interest-rate cuts this year.

US Federal Reserve officials raised concerns in December that the fight against inflation may have "stalled" in recent months, and weighed the likely impact of Trump's trade policies, according to minutes of the meeting published Wednesday.