Inflation is proving stickier than expected, which could cause Fed to hit pause button on more interest rate cuts.

The Federal Reserve will soon begin its quinquennial review of the monetary policy strategy, tools and communications employed to fulfill its congressional mandate.

The effects of potential changes in trade and immigration policy suggested” restoring 2% inflation “could take longer than previously anticipated,” according to the Fed minutes released Wednesday.

Federal Reserve officials at their meeting Dec. 17-18 expected to dial back the pace of interest rate cuts this year in the face of persistently elevated inflation and the threat of widespread tariffs and other potential policy changes.

U.S. stocks were surging on Wednesday morning as Treasury yields fell after core inflation data came in below expectations, boosting bets that the Federal Reserve will still be able to cut interest rates this year.

The Dow fell 600 points on Friday morning after new job reports surpassed expectations, and the Federal Reserve indicated that interest rate cuts may be postponed. Additionally, inflation remains a concern and is anticipated to stay high.

Ten-year Treasury yields were hovering just shy of their highest since last May, and the 30-year yield was close to its highest since November 2023, as investors continued to show concern that President-elect Trump’s import tariff and immigration plans may revive inflationary pressures.

Fed Chair Jerome Powell has said the central bank will keep its key interest rate elevated until inflation is back to 2%. As a result, Wall Street investors expect the Fed to cut its key rate just a single time this year, from its current level of 4.3%, according to futures prices.

Forecasters surveyed by the data firm FactSet expect that U.S. payrolls grew by 153,000 ... he says, that would be seen by Federal Reserve Chair Jerome Powell as striking a Goldilocks balance, not hot enough to inflame worries about inflation, not cold ...

As President-elect Donald Trump prepares to return to the White House, the U.S. dollar has, by at least one measure, never been stronger.

The average 30-year fixed rate rose to 7.04% for the week ending Thursday, according to mortgage giant Freddie Mac. The average has now climbed for five straight weeks, and this week marks the first time since May the it has climbed above 7%. Last week, the average was 6.93%. Three years ago at this time, the average stood at 3.45%.

Recently, progress on inflation appeared to be stuck or, at worst, reversing: A closely watched gauge of underlying price hikes — an index that excludes highly volatile categories — hadn’t budged for months.