The US Federal Reserve has held its main US interest rate steady at 2% and voiced greater concern about inflation.
Its inflation comments are seen as taking it closer to raising interest rates in the future.
This was the first time the Fed has held rates steady at a policy-setting session since embarking on a series of rate reductions in September to help an economy hit hard by a housing downturn and credit crisis.
'Although downside risks to growth remain, they appear to have diminished somewhat, and the upside risks to inflation and inflation expectations have increased,' the Fed said.
It also said 'overall economic activity continues to expand'. After its last policy meeting on April 30, it described economy activity as 'weak'.
