(by Mark Riley)

The U.S. Federal Reserve says it has an option to bring interest rate back to normal highs as the U.S. economy left behind its soft patch.

On Monday, Fed officials underlined its option to lift interest rates as growth data now sees some improvement after a recent slowdown. Expected level will reflect the economy with graduate expansion.

"I don’t think we are yet at neutral, we still have a way to go," said Philadelphia Fed President Anthony Santomero. He also pointed an inadequate position of the recent expension and the level of interest rates.
Fed officials also said they expect neutral position of the rate to be between 3% and 5%.

This year, Fed lifted interest rates three times and stopped so far at the level of 1.75%, the figure which is much lower compared with the expected ones.

"I think the economic news in the last week suggests that we are coming out of the soft spot we went through. I think we are going to see a faster pace of economic growth this quarter," said Fed Governor Susan Schmidt Bies.

Fed is expected to lift interest rates as soon as the next meeting in November.