NEW YORK (AP) — Wall Street pulled back yesterday, finishing slightly lower as investors grappled with an economic assessment by the Federal Reserve that warned yet again of inflation risks and reported a substantial slowing of the housing sector.The statement, which accompanied the Fed’s widely expected decision to keep the nation’s benchmark interest rate unchanged at 5.25 percent, left open the possibility that the central bank might raise rates if inflation accelerates. That disappointed some investors who were hoping for signs that the Fed was moving toward cutting rates.

Investors fear that an increase could cause problems if it comes as the economy — in particular the interest rate-dependent housing sector — is still slowing. The Fed’s statement described of the housing market’s slowdown as “substantial”, a change from past statements.

Still, while the Fed has said its primary concern is inflation, it is also monitoring the overall economy for signs of too much of a slowdown. The Fed predicted, “the economy seems likely to expand at a moderate pace on balance over coming quarters”.

Overall, the statement indicated to market participants that the Fed wants to keep rates steady for as long they can, analysts said.

“They’re trying to talk tough in the hopes of not having to act tougher,” said Jack Caffrey, equities strategist at J.P. Morgan Private Bank.

The Dow Jones industrial average was down 12.90, or 0.10 percent, at 12,315.58. Earlier in the day, it had fallen more than 76 points.

Broader stock indicators also fell, but closed above their lows as well. The Standard & Poor’s 500 index slipped 1.48, or 0.10 percent, to 1,411.56, and the Nasdaq composite index fell 11.26, or 0.46 percent, to 2,431.60.

Stocks had been lower throughout the day, as tepid profits at Best Buy Co. signalled that demand for electronics may not boost holiday sales as much as anticipated. Best Buy’s third-quarter profit rose, but came in below expectations as the electronics retailer lowered prices to move merchandise. It was a sign that demand during the peak shopping season might not meet investors’ hopes.

Yesterday’s corporate news wasn’t all dour — Goldman Sachs, Wall Street’s largest investment bank, reported its fourth-quarter profit nearly doubled on high merger-and-acquisition activity, the hot commodities market, and soaring stocks. The Dow surpassed 12,000 for the first time this fall.

However, Goldman Sachs fell $1.56 to $200.97, as concerns arose that the investment firm’s performance may have peaked.

Another sign that the economy is still faring well was the Commerce Department’s report that the trade deficit fell to $58.9 billion in October, much lower than economists were anticipating. The 8.4 percent drop from September, the biggest percentage drop in five years, was a result of moderating oil prices — a factor that the Fed took into consideration at its meeting Tuesday.

“The Fed continues to believe in the forecast it set forth during the summer, that continued economic growth remains intact,” said Alan Gayle, senior investment strategist at Trusco Capital Management. “It continues to believe inflation will moderate, but it has to remain vigilant until that happens.”

Crude oil for January fell 27 cents to settle at $60.95 on the New York Stock Exchange.

Bonds climbed after the Fed meeting, with investors relieved that little had changed in the central bank’s statement. The yield on the benchmark 10-year Treasury note fell to 4.49 percent, down from 4.52 percent late Monday. The dollar was mostly lower against other major currencies, while gold prices fell.