Federal Reserve likely to raise interest rates 'soon': Minutes

US central bankers are likely to raise the key interest rate "soon" given the strength of the economy and as inflation has inched higher, the Federal Reserve said Wednesday.

It seemed a clear signal of a rate hike coming next month, as financial markets expect.

However, the Fed will continue to move only gradually, even if inflation is "modestly" above its two percent target, as long as that increase is only "temporary," according to the minutes of the May 1-2 meeting of the policy-setting Federal Open Market Committee.

APP