The four Federal Reserve officials on Friday raised concerns about the increasing inflation rate and hinted on the possibility of increase in the interest rates by central bank.

President of the Federal Reserve Bank of Philadelphia, Charles I. Plosser, and the Fed has to withdraw its monetary package followed by the increase in interest rates to tackle the increasing inflation.

Cotton prices have increased by 20% during the current year while the corn price has doubled since last year and per barrel rate of crude oil has increased by $22 and in Philadelphia area; the gasoline has witnessed an increase of 37 cents a gallon.

Plosser, during his speech in Harrisburg said, "Signs that inflation expectations are beginning to rise or that growth rates are accelerating significantly would suggest that it is time to begin taking our foot off the accelerator and start heading for the exit ramp," and added "We should not be too sanguine in believing that such a time is a long way off or that the process will only be gradual."

Richard W. Fisher, president of Federal Reserve Bank of Dallas; Jeffrey Lacker, President, Federal Reserve Bank of Richmond and Federal Reserve Bank of Kansas City president Thomas Hoenig, in separate appearances on Friday had shown their concerns over the issue.

During the nine day span in August 2007, The Bank of China was the second- largest borrower from the discount offer of Fed.

After the collapse of the Lehman Brothers Holdings Inc, the Arab Banking Corp. , used its New York branch to have as many as 73 loans sanctioned from Fed.