The U.S. manufacturing sector bounced back in December after a sluggish phase of November, while housing sector continued to fall though less than expected in November, according to recent data. However, these encouraging data remain short-lived as the Federal Reserve while suggesting a moderate economic growth hinted at rate hikes to control core inflation rates. While portraying a grim picture of the U.S. economy Federal Reserve in its minutes cleared that the inflation rates remained the foremost concern for them as the current rates of core inflation is uncomfortably high. The minute of the policy meeting of Federal Reserve revealed that subdued tone of some incoming indicators hint at downside risks to economy growth in near future. In the meanwhile a report revealed that private sector employment has fell in December for the first time in the last three years. However, the mixed signal given by the Fed might have alarmed some at Wall Street, who were expecting the Central Bank to cut interest rates a couple of times in the current year to ensure soft landing for the economy. On the other hands experts are not giving much weight to the minute and they are of the view that the recent data indicating a resilient economy ahead have already overtaken the minutes. They have further argued that the policy meeting of the Fed was held before latest reports started coming in. They pointed out that the recent retail sales in the middle of December clearly draw a resilient picture of the economy.