"However, the notion that the economy will grow more swiftly remains a forecast rather than a reality at this point," Dudley added. "Thus, we will continue to monitor US and global economic conditions very carefully and will adjust our views on the likely path for growth, inflation and the unemployment rate accordingly."
Yellen backs Fed US stimulus:
Among a slew of Fed officials scheduled to speak this week is Fed Chairman Ben Bernanke, due to talk on Tuesday, while investors are also eyeing the minutes from the Fed's latest meeting, due to be released on Wednesday.
"This week is crucial, there is a lot of Fed speak," Quincy Krosby, a market strategist for Newark, New Jersey-based Prudential Financial, told Bloomberg News. "Investors want to get a little bit more colour and atmospherics from the minutes."
For now, economists polled by Bloomberg on November 8 predict policy makers will decide to pare the pace of purchases to US$70 billion a month at their March 18-19 meeting.
Meanwhile, the National Association of Home Builders/Wells Fargo Housing Market Index, a gauge of builder sentiment, was unchanged at 54 in November from a revised October reading that was weaker than initially estimated. It was below expectations for a 55 reading as predicted in Bloomberg and Reuters surveys.
"Policy and economic uncertainty is undermining consumer confidence," said NAHB Chief Economist David Crowe in a statement. "The fact that builder confidence remains above 50 is an encouraging sign, considering the unresolved debt and federal budget issues cause builders and consumers to remain on the sideline."
In Europe, the Stoxx 600 Index added 0.5 per cent. The UK's FTSE 100 Index gained 0.5 per cent, while Germany's DAX increased 0.6 per cent, and France's CAC 40 rose 0.7 per cent.