A spike in inflation or a deeper-than-expected housing slump could complicate things for the U.S. economy, U.S. Federal Reserve Chairman Ben Bernanke said today.

“The deceleration in economic activity currently underway appears to be taking place roughly along the lines envisioned,” Bernanke said in prepared remarks to the National Italian American Foundation in New York.

The slowdown in overall activity mostly reflects the housing slump, he said. As the economy cools, inflation also should continue to gradually ease over the next year or so, he added.

However, “substantial uncertainties” surround the Fed’s outlook, Bernanke said.

The slowdown in the U.S. housing market could turn out to be deeper than expected, putting an even greater drag on overall economic activity. Or, Bernanke surmised, economic growth could rebound more strongly than expected, which could lead to a flareup in inflation.

“A failure of inflation to moderate as expected would be especially troublesome,” he said.