NAM: Yellen: December rate hike a “live possibility”

The New York Times (11/5, Appelbaum, Subscription Publication) reports that Federal Reserve Chairwoman Yellen “reiteratedWednesday that the Fed could raise its benchmark interest rate in December,” telling the House Financial Services Committee,“It could be appropriate” for the Fed to act in its final policy-making meeting this year. Yellen said that while “no decision has been made,” the economy is “‘performing well,’ suggesting that if growth continued apace, the Fed was inclined to start raising interest rates.” Yellen, the Times adds, “emphasized that the Fed’s decision would rest on the next few rounds of economic data, beginning Friday with the government’s October employment report.” USA Today (11/5, Davidson) notes that Yellen told the panel that move at the Fed’s next meeting is “a live possibility.”

The Wall Street Journal (11/5, Leubsdorf, Subscription Publication) reports that, like Yellen, New York Fed President Dudley, who serves as vice chairman of the Fed’s rate-setting committee, called a rate increase in December a “live possibility.”

In a report that focuses primarily on Yellen’s testimony, Bloomberg News (11/5, Torres) notes that Dudley said he “agreed with the chair, but ‘let’s see what the data shows.’” Bloomberg said the comments from Yellen and Dudley “reinforced the idea that next month is in the crosshairs for an increase, and placed the focus on upcoming employment and other economic data.”

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