Global economic weakness, lackluster consumer data could trigger interest rate hikes this year

Federal Reserve officials are starting to reassess their outlook for the economy as global weakness and disappointing data on US consumer spending test their resolve to raise interest rates this year.

San Francisco Fed President John Williams last week said he will trim his US estimate because of slower growth abroad. Atlanta's Dennis Lockhart said on Jan 12 that he advocates a "cautious" approach to rate increases and inflation readings "may be pivotal". Both are voters on the Federal Open Market Committee in 2015 and repeated that rates could be raised in the middle of the year.