A hot December jobs report has many strategists confident the Federal Reserve will hold off on further interest rate cuts for now. And some on Wall Street think this report may have even cracked the door open for the Fed to consider rate hikes in 2025.

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.

"I think really the market is saying maybe no rate cuts in 2025, and that the 10-year could very easily break well above 5%," Jeremy Siegel said.

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.

Employers across the U.S. added a robust 256,000 jobs in December, a sign the labor market remains in good shape.

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.

US hiring picked up unexpectedly in December as employers added 256,000 jobs, another sign of the economy’s resilience in the face of high interest rates. The Labor Department reported Friday that job growth was up last month from 212,