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,

The Fed held its benchmark interest rate in the 4.25%-4.50% range at its meeting last month, and is expected to do so again at its March 18-19 meeting as officials wait for more clarity on how the economy responds to new tariffs and stricter immigration rules.

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

Federal Reserve officials indicated last month that they needed to see “further progress on inflation” before any new interest rate cuts, as the US central bank kept monetary policy steady in the face of high uncertainty over the outlook.

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.