US central bank officials have paved the way for an interest rate hike next month - taking Wall Street by surprise.
Policy makers at the US Federal Reserve indicated that most felt it would be "appropriate" to raise rates at their meeting of 14-15 June if the jobs market and economic growth strengthens, and inflation shows signs of moving towards its 2% target.
The Fed - led by chair Janet Yellen - lifted interest rates by 0.25% in December after seven years at near zero, but expectations about further increases this year have since been dampened following turbulence in global stock markets and a world growth slowdown.
But in newly-released minutes of the Fed's latest rate-setting meeting in April, officials said recent data made them more confident that inflation was moving towards its target, and that they were less concerned about global conditions.
US stock markets turned lower after the release, as it pointed to a further tightening of the cheap money policy that had helped nurse the world's biggest economy back to health after the recession.
The Fed's thinking is closely watched across the globe because of the repercussions further rate hikes might have - especially in emerging markets, where it could hurt investments.
The US outlook is in stark contrast to the picture in the UK and Europe, where low inflation means policy makers have kept rates at or around record lows.
In the UK, many experts do not expect to see any rate hike until next year.
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