Key Takeaways The Federal Reserve policy committee's annual rotation gives more votes to "hawkish" members this year, whom experts see as more inclined to keep interest rates higher.The Fed is balancing the need for rates high enough to subdue stubborn inflation while avoiding crushing the economy.

Federal Reserve policymakers got fresh reasons to hold short-term borrowing costs steady after government data signaled renewed strength in the U.S. job market, with traders now betting the U.S. central bank will wait until June to cut interest rates again and end its rate-cutting cycle there.

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

Several Federal Reserve officials confirmed Thursday the US central bank will likely hold interest rates at current levels for an extended period, only cutting again when inflation meaningfully cools.

After a quarter-point cut in December, Chairman Jerome Powell said policymakers may be more cautious, since the incoming administration will create more uncertainty.