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.

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.

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

The odds of a rate cut from the Federal Reserve are getting slimmer by the day. Markets are pricing in a 95% chance that the Fed keeps borrowing costs unchanged at its Jan. 30 decision. That’s up from 94% yesterday,

Traders on Friday bet the Federal Reserve will wait until at least June to reduce its policy rate, and end its rate-cutting cycle there after government data showed employers added far more jobs than expected in December.

Friday’s unexpectedly big increase in December nonfarm payrolls led to a diminished market-based likelihood for any rate cut by the Federal Reserve until September, based on one method of calculating expectations — and one big bank sees the risks tilting toward a rate hike.

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.

Two top Federal Reserve officials on Thursday questioned the need for many more interest rate cuts. Fed Governor Michelle Bowman and Kansas City Fed President Jeff Schmid both said the 100 basis points in rate cuts since September has brought the Fed’s benchmark rate down to “neutral,” where it neither dampens or boosts demand.