The timing of US interest rate cuts is causing some controversy in global markets, after the sudden increase in US consumer prices in December, and the strong labor data, which proved the resilience of the world's largest economy.
Such economic flexibility could push the Fed to maintain current tight interest rates unchanged for an extended duration.
Indeed, several Fed officials said it's still too early to talk about interest rates soon.
They said upcoming data will help determine the likely path ahead for policies, as they haven't seen enough evidence to cut interest rates yet.
The odds of a March interest rate cut fell to below 50% on Friday according to CME data.
San Francisco Fed President Mary Dale said the US economy and monetary policies are in a good position, and it's too early to talk about rate cuts.
She added there's still weak evidence of inflation threading down, with the labor sector continuing to firm, removing the need for policy easing.
Atlanta Fed President Raphael Bostic said he doesn't expect a rate cut before the third quarter.
However, he said on Friday he's open to changing his outlook according to fresh data, but he needs to see clear evidence that inflation is heading towards 2%.
Official Fed's outlook points to three rate cuts in 2024, amounting to 75 basis points.
Chicago Fed President Austan Goolsbey said that any changes in policies will fully depend on data showing a clear path to 2% inflation.
The Federal Reserve is now preparing to convene on January 30-31, fully expected to maintain interest rates unchanged.
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