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 and other potential policy changes.

The central bank cut rates last month but saw risks of somewhat firmer price pressures this year due to potential tariff increases by President-elect Trump.

Potential tariffs that could be imposed by US president-elect Donald Trump are unlikely to have a material impact on the Federal Reserve's interest rate decisions, a senior central bank official said on Wednesday.