Yellen: Conditions For Rate Hike Are Being Met

(RTTNews) - The Federal Reserve is on track to raise interest rates at its December 15-16 meeting, Fed Chair Janet Yellen signaled in a speech to the Economic Club in Washington.

Yellen stopped short of explicitly saying the Fed will hike rates this month, but acknowledged that conditions for tightening are on the verge of being met.

"I currently judge that U.S. economic growth is likely to be sufficient over the next year or two to result in further improvement in the labor market," Yellen said.

"Ongoing gains in the labor market, coupled with my judgment that longer-term inflation expectations remain reasonably well anchored, serve to bolster my confidence in a return of inflation to 2% as the disinflationary effects of declines in energy and import prices wane," she added.

Yellen downplayed concerns about the global economy that may have kept the Fed from raising rates earlier this year.

"These downside risks from abroad have lessened since late summer," Yellen said, noting that China has room to support its sluggish economy with further stimulus.

Yellen will likely expound upon her asssessment of the economy in testimony before Congress tomorrow morning.

Earlier today, Atlanta Fed President Dennis Lockhart said there is a "compelling" argument for raising interest rates in December.