The US Federal Reserve may consider increasing its interest rates as data indicates that the United States' GDP has improved by 3.2 percent annually along with stronger consumer spending and private hiring by the third quarter of 2016.  Vehicle sales and manufacturing take hits due to strong dollar and pre-election results worries by investors.

According to MarketWatch.com, during a speech in The Economic Club of Indiana in Indianapolis, US Federal Governor Jerome Powell sees that the Federal Reserve can now increase its federal funds rate as the situation "has clearly strengthened since our previous meeting earlier this month."

Market analysts expect that the Federal Open Market Committee could vote for an increase in the Federal Reserve Interest rate on December 13-14. MUFG Union Bank Chief Economist Chris Rupkey believes "nothing in today's reports that put a roadblock in front of a Fed hike." Figures from the ADP National Employment Report indicate an increase of 216,000 jobs from private companies on November alone surpassing the economic expectations of 165,000..

According to Reuters -- citing the Commerce Department's Consumer Spending report -- the 70 percent economic powerhouse had delivered with an increase of 0.3 percent. Spending last September had also increased by 0.5 percent. During the first half of 2016, the US economy had grown but wage growth was yet to be seen.

According Powell, the increase or decrease of the Federal Reserve interest rates will depend on the economy. He also said that it is likely the Federal Reserve will tighten its policies if things move slower than it has been patient about raising interest rates. The Federal Reserve has pushed to increase its interest rates from near-zero levels but had withdrawn as market figures indicated holes in the country's economy during the first half.

Federal Chairwoman Janet Yellen said the Fed could increase its interest rates "relatively soon." Her statement has influenced the market's expectations that a quarter percent rate hike is highly influenced the market's expectations that a quarter percent hike is guaranteed by 2017.