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

If year-on-year total and core CPI consumer inflation rates accelerate, financial markets risk turbulence as investors’ 2025 interest rate cut expectations fall further.

Stock futures were pointing to further losses on Monday, suggesting the market still isn't over a blockbuster jobs report that has investors questioning if the Federal Reserve will lower interest rates at all this year.

Key Takeaways The odds of the Federal Reserve cutting its benchmark interest rate this year fell after a jobs report Friday showed hiring in December blew past expectations.Strong job growth means less pressure on the Fed to cut interest rates to save the economy and prevent layoffs.

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 Federal Reserve has been "less focused on the job market recently," and today’s better-than-expected employment report "gives them more reason to put their attention elsewhere," said Ali Jaffery,

Top Wall-Street brokerages revised their Fed rate cut forecasts, after a blow-out U.S. jobs report on Friday, with BofA Global Research forecasting a potential rate hike from the central bank.

Risk assets trade weak as investment banks pare back Fed rate cuts in the wake of Friday's hotter-than-expected U.S. jobs report.

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.

Bank of America (BofA) has revised its forecast, stating the Federal Reserves rate-cutting cycle has concluded. This shift follows a stronger-than-expected December jobs report, which revealed a substantial