LAS VEGAS (REUTERS) - A top Federal Reserve official said on Thursday that while the Fed does not expect its large balance sheet to ignite inflation, if its forecasts are wrong the US central bank has the tools to keep inflation from rising out of control.

San Francisco Fed president John Williams told a group of business leaders in Las Vegas that the Fed could raise rates more quickly if the economy starts to overheat, and also noted that the central bank has not ruled out selling assets if needed to keep inflation under control.

Williams also said that if the global economy slows "significantly," that could prompt the Fed to delay raising rates beyond what is currently expected.