Yellen says interest rate increase likely in December

WASHINGTON, Nov. 4 (UPI) -- Janet Yellen, chair of the Federal Reserve, suggested Wednesday a December interest rate increase is a possibility owing to the strength of the U.S. economy.

"At this point I see the U.S. economy as performing well," she told the House Financial Services Committee in Washington.

She said "domestic spending has been growing at a solid pace" and called a December rate hike a "live possibility."

The Fed's Open Market Committee, in a statement after its October meeting, cited strong rates of household spending and business investment, adding it will consider raising interest rates at its next meeting, scheduled for Dec. 15 and 16.

In her prepared statement Wednesday, Yellen emphasized the comprehensive nature of Federal Reserve reforms since the 2008 economic crisis.

"Taken as a whole, the reforms we have adopted since the crisis, including those mandated by the Dodd-Frank Act, represent a substantial strengthening of the regulatory framework for the largest financial institutions and should help ensure that the U.S. financial system remains able to fulfill its vital role of supporting the economy." she said.

In questioning she noted the national unemployment rate stood at 5.1 percent in September, and although higher than the goal of 4.9 percent, added, "I see under-utilization of labor resources as having diminished significantly since earlier in the year, although recently we've seen some slowdown in the pace of job gains."