WASHINGTON (Reuters) - The U.S. economy is “performing well” and could justify an interest rate hike in December, Federal Reserve Chair Janet Yellen told Congress on Wednesday.
“I see underutilization of labor resources as having diminished significantly,” Yellen said, with inflation expected to rise over the medium term.
The Fed is “expecting the economy will continue to grow at a pace to return inflation to our target over the medium term,” she said. “If the incoming information supports that expectation ... December would be a live possibility” for a rate increase, Yellen added.
Reporting by Howard Schneider; editing by Tim Ahmann