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A recovering housing sector should continue to raise household confidence.
Mr. Knightley said that a rising tax burden could dent already fragile household confidence.
A gauge of household confidence in the economy's future also dropped to its lowest since December.
Household confidence is flat and business confidence dipped in May, during prolonged strikes against pension reform.
GfK, a German consumer research organization, offered another bit of grim news with word that household confidence had also dropped.
Thanks in part to rising oil and food prices, household confidence has fallen sharply since September, and the French are feeling the squeeze on their pockets.
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"Further vigorous easing action would tend to support business and household consumer confidence, which a number of members saw as especially important in the current circumstances," the minutes said.
But will the household's confidence be so shaken as to bring about a recession?
Over the year average hourly earnings have risen by 2.5%, that's well above the rate of inflation but hardly enough to increase household financial confidence.
"The anticipated pickups in economic activity and job creation, together with the expected easing of price pressures, should bolster real household income, confidence and spending in the medium run," the Fed chairman told the House Financial Services Committee.
Surveys of households show confidence had picked up further in March, linked in part to people being busier at work, which both improved job security and raised take-home pay.
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