A rise in US interest rates may be likely after US Federal Reserve officials agreed at their December meeting that inflation was the predominant concern, with some worried about downbeat economic data.
Several members judged that the subdued tone of some incoming indicators meant that the downside risks to economic growth in the near term had increased a little and become a bit more broadly based than previously thought,' said the minutes of the 12 December meeting.
'Nonetheless, all members agreed that the risk that inflation would fail to moderate as desired, remained the predominant concern,' the minutes added.
The US central bank at that meeting held benchmark interest rates steady at 5.25%, renewing a warning on inflation but also noting 'mixed' economic signals and a 'substantial' housing slowdown.
The statement the Fed issued last month said increases in interest rates might be necessary to address risks from inflation.
Participants in the policy-making Federal Open Market Committee meeting said the slowdown in the housing sector continued to weigh heavily on economic activity in the US, and although this had not spilled over significantly into consumer spending, uncertainty has meant its impact on spending could become more evident.
Also, the central bank officials said a slowdown in business investment and production, along with high inventories for cars and in other sectors, added to a picture of slowing economic expansion.
