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Two Federal Reserve Bank presidents last week said they see conditions becoming favorable for a federal funds target rate increase in December.

St. Louis Federal Reserve Bank President James Bullard on Friday said inflation is likely to reach the Federal Reserve's target goal of 2 percent. He also said, during a speech in Arkansas, that if oil prices stabilize and other prices continue to increase, he expects the consumer price index to go above 2 percent by the end of 2016, according to MarketWatch.

NAFCU's research team reported last week that core personal consumer expenditure (PCE) inflation grew by 1.3 percent, year-over-year, in October. Core PCE is the Fed's preferred inflation marker and although it has consistently run below the Fed's target, NAFCU Chief Economist and Director of Research Curt Long said that "the effects of the precipitous drop in oil prices in late 2014 and early 2015 will begin to bleed out of the year-over-year figures in the coming months."

On Saturday, San Francisco Federal Reserve Bank President John Williams told reporters there is "a strong case that can be made in December to raise rates" due to the Fed's confidence in reaching the 2 percent goal and other positive economic indicators, according to Bloomberg.

NAFCU also reported earlier this month that positive jobs numbers in October – an unemployment level of 5 percent – caused the federal funds futures market to place the odds of a December rate increase at close to 70 percent.

The Federal Open Market Committee is set to meet on Dec. 15-16. The range has been set at 0 to 0.25 percent since 2008.