New York - US stocks were largely unchanged Wednesday as Federal Reserve Chairman Ben Bernanke fretted about high inflation, prompting speculation the US central bank may be considering raising interest rates for the first time in nearly a year.

"Some indicators of longer-term inflation expectations have risen in recent months, which is a significant concern," Bernanke said in a speech at Harvard University, adding that maintaining price stability was a "top priority."

His comments led banking shares to their lowest level in eight years, according to Bloomberg financial news.

The Fed has cut its benchmark rate by 3.25 percentage points since September, and is now left navigating the pitfalls of a slowing US economy and high food and energy prices that could drive up inflation.

Technology shares were a bright spot Wednesday after the Institute for Supply Management said growth in services industries - which make up nearly 90 per cent of the US economy - had dropped off less than expected in May.

The blue-chip Dow Jones Industrial Average was down 12.37 points, or 0.1 per cent, to 12,390.48. The broader Standard & Poor's 500 Index was virtually unchanged, falling
0.45 points to 1,377.20. The technology-heavy Nasdaq Composite Index climbed 22.66 points, or 0.91 per cent, to 2,503.14.

The US currency edged up against the euro to 64.82 euro cents from 64.75 euro cents on Tuesday and against the Japanese currency to 105.27 yen from 105.13 yen. (dpa)