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The U.S. economy is likely strong enough for at least one interest rate increase before the end of 2016, with two hikes a possibility, Atlanta Federal Reserve Bank President Dennis Lockhart said on Tuesday.

"I would not rule out September," Lockhart said, citing what he described as ongoing U.S. job gains and "healthy" signs that inflation will pick up as possibly justifying a rate increase at the Fed's policy meeting next month.

"If the meeting were today I think the economic data would justify a serious discussion," he told reporters after a speech to the Rotary Club of Knoxville. "It's conceivable we could have two rate increases this year."

Earlier on Tuesday, New York Fed President William Dudley also voiced confidence in the economy and said the U.S. central bank might raise rates as soon as its Sept. 20-21 policy meeting after months in which outside risks prompted it to hold back.

U.S. consumer prices were unchanged in July but a rise in industrial output and home building suggested a pickup in economic activity that could allow the Federal Reserve to raise interest rates this year.

Tuesday's economic reports came as influential New York Fed President William Dudley said the U.S. central bank could raise interest rates next month, citing a tightening labor market that he said was starting to spur faster wage growth.

Oil prices fell away from 5-week highs early on Wednesday, as analysts doubted a successful outcome from producer talks to rein in ballooning oversupply.

International Brent crude oil futures were trading at $48.85 per barrel at 0018 GMT, down 38 cents from their last settlement. Despite the dip, prices are still up over 17 percent since early August and remain not far off a five-week high of $49.36 a barrel reached the previous day.

U.S. West Texas Intermediate (WTI) crude futures were at $46.30 per barrel, down 28 cents from their last close, but are still up about 18 percent from early August.

Traders said that profit taking following the recent price rallies was weighing on prices, and there were also doubts that any producer talks to rein in on oversupply would be successful.