Many officials see interest rate increase relatively soon, Fed minutes say

Many rate-setters in the US decided at their last policy meeting that an interest rate increase could be appropriate "relatively soon", the minutes of their deliberations revealed.

“Some participants noted that recent committee communications were consistent with an increase in the target range for the federal funds rate in the near term or argued that to preserve credibility, such an increase should occur at the next meeting,” the minutes revealed.

US central bank officials also continued to emphasise that "only gfradual increases" would be warranted.

Of interest, "it was noted that allowing the unemployment rate to modestly undershoot its longer-run normal level could foster the return of inflation to the FOMC’s 2 percent objective over the medium term."

“A number of policy makers stated that they continue to view expansion of the balance sheet through large-scale asset purchases as an important tool to provide macroeconomic stimulus,” the minutes also said.

Yellen also went on record as having said the monetary authority would "proceed cautiously".