A top Federal Reserve official has said the US central bank is “pretty close” to meeting its objectives on inflation and employment, underscoring investor expectations that policymakers will refrain from sharp interest rate cuts this year.

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

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.