Federal Reserve Chair Janet Yellen indicated a solid US economy has paved the way for an interest rate hike in December if economic reports continue to assure policymakers inflation will accelerate over time.
Speaking before the House Financial Services Committee, Yellen said the economy is performing well at this point, and that domestic spending has been expanding at a sturdy pace.
The Fed chair’s testimony bolstered the yield on two-year US Treasury notes to 0.82%.
Previously, the Federal Open Market Committee said it will consider raising rates at its December meeting, attributing it to better business investment and household spending.
The US central bank has retained the rate near zero since 2008, waiting for labor markets to inch closer to their target of full employment.
The material has been provided by InstaForex Company – www.instaforex.com