Federal Reserve Chair Jerome Powell said additional evidence of strength in the labor market and above-trend economic growth could warrant "further tightening" of monetary policy.

"We are attentive to recent data showing the resilience of economic growth and demand for labor," Powell said, signaling that December is a live meeting for an interest-rate increase if overall demand and hiring don't start to slow.

"Evidence of growth persistently above potential, or the tightness in the labor market is no longer easing, could put further progress on inflation at risk and could warrant further tightening of monetary policy."

The remarks came in Powell's opening statement at his second-to-last press conference for the year, after the central bank's Federal Open Market Committee held the target range for its benchmark lending rate unchanged at 5.25% to 5.5% for a second straight meeting.

In its post-meeting statement, the FOMC signaled a recent rise in longer-term Treasury yields may weigh on the economy and inflation.

Since officials last met in September, data have shown the economy expanded at a 4.9% annual rate in the third quarter, while monthly retail sales and payroll growth figures have also come in above forecasts.

Projections published by Fed officials after the September gathering showed a majority expected one more rate hike this year, though futures markets before Powell spoke suggested the probability of another increase was less than 30%.

Source : Bloomberg