Officials of the US Federal Reserve worried last month that the global slowdown and selling in the financial markets could hurt the US economy, and considered changes in the planned trajectory of rising interest rates in 2016.
While most officials still expect rate hikes this year, and even discussed it at a meeting on 26-27 January, their views on the interpretation of the volatility of the financial markets were divided, according to minutes of the meeting released on Wednesday.
This suggests that the Fed backs the plan to four rate hikes, which was signaled in December, when raising rates for the first time in nearly a decade.
The officials discussed "change earlier views about the appropriate path for the federal funds rate target range", but most considered "premature" significant changes in its forecast, according to the protocol.
They added that they will closely monitor the global economic changes, as well as oil prices and stocks.
"A number of participants were concerned about the potential negative impact on the US economy of the wider effects of the expected slowdown in China and other emerging market economies," – is said in the report.
After a lengthy discussion of global economic risks, the officials agreed that economic uncertainty has increased, and expressed concern about the impact of continued instability in the financial markets.
"If the recent tightening of global financial conditions continues, it can become a factor increasing the downside risks" to the economy, is said in the protocol.
Global financial markets remain volatile since the January Fed meeting. Mexico - one of the major US trading partners - raised interest rates on Wednesday to deal with the weakening of the peso against the dollar.
Fed Chairman, Janet Yellen, said last week that the central bank is still willing to gradually raise interest rates in 2016, but acknowledged that the weakening global economy and the sharp decline in equity markets will lead to a more tightening of financial conditions than desired by regulator.