Federal Reserve Vice Chairman Philip Jefferson said on Wednesday the U.S. central bank has time to weigh its next monetary policy move, citing a robust economy and still above target inflation.

The Fed, citing elevated inflation pressures, held short-term interest rates steady at a range of 4.25% to 4.5% at its January meeting.

The Federal Reserve kept its key interest rate unchanged as officials grappled with uncertainty caused by inflation and President Trump's plans.

Federal Reserve officials at a meeting last month pointed to rising risks that inflation could worsen, a key reason they kept their benchmark interest rate unchanged

The market’s expectations for the Federal Reserve’s next move on interest rates held steady after the publication of minutes from the Federal Open Market Committee's January meeting. Traders are still expecting an extended pause on rate cuts with the next quarter-point reduction coming in July,

Central-bank officials cited trade policy as a factor that could hinder inflation progress.

After three successive interest rate cuts, the Federal Reserve on Wednesday made no change in its benchmark lending rate amid new economic uncertainties over the outlook for inflation and President Trump's continued threats of new tariffs and other measures.

January inflation ran hot, and the odds of Fed interest rate cuts fell as Consumer Price Index total CPI inflation accelerated to 3.0%, the highest rate since June 2024.

Federal Reserve policymakers noted the potential for higher tariffs to contribute to inflation remaining above the central bank's 2% target rate in the minutes from their last meeting.

The decision last month to leave the benchmark federal-funds rate at its current level around 4.3% followed rate cuts at three consecutive meetings—beginning in September, when

Federal Reserve officials in January expressed their readiness to hold interest rates steady amid stubborn inflation and economic policy uncertainty.