Federal Reserve officials have signalled more help for the US economy may be necessary despite recent data that suggested the recovery was picking up steam.

San Francisco Fed president John Williams and Sandra Pianalto, head of the Cleveland Fed, said they expected inflation to dip this year, which could pave the way for more policy accommodation from the already stretched central bank.

The pair, each with a vote this year on the Fed’s policy- setting committee, did not specifically advocate policy change but they suggested conditions could yet warrant more action.

The Fed late in 2008 cut interest rates to near zero and has since bought $2.3 trillion in long-term securities to spur growth and keep the economy afloat. – (Reuters)