The U.S. Federal Reserve (Fed) opted to leave the door open to additional rate increases "in view of the risk that the outlook for inflation could worsen," according to minutes of the Fed's May 10 policy-making meeting released on Wednesday.
Worried about the potential for inflation to get worse, the U.S. Fed had considered raising a key interest rate by half a percentage point, the document said.
However, the Fed decided to raise the federal funds rate by one- quarter percentage point to 5 percent, the highest level in 5 years.
Fed policymakers deemed that action appropriate "to keep inflation from rising and promote sustainable economic expansion," according to the minutes.
The Fed said "a number of factors were augmenting the upside risks to inflation" including a run up in energy prices as well as some commodity prices and a weaker value of the U.S. dollar.
The U.S. Fed will hold its next policy-making meeting at the end of June.