The 4.1 percent third quarter growth rate came after the economy expanded at a 2.5 percent rate in the second quarter.

A measure of the U.S. economy's health posted a solid gain in November, suggesting momentum was building at the end of the year.

The Commerce Department's second estimate of third-quarter growth released Thursday was sharply higher than the initial 2.8 percent rate reported last month.

Manufacturing strengthened in most districts, helped by more production of cars, trucks and high-tech products.

U.S. banks earned less in the July-September quarter than they did a year earlier, marking their first year-over-year profit decline since the spring of 2009 when the country was still mired in the Great Recession.

Americans are less optimistic about hiring and pay increases.

The reduction would occur in "measured steps" and could end all together by the middle of next year, Bernanke said.

The government says Medicare's giant hospital trust will not be exhausted until 2026, while the date that Social Security will exhaust its trust fund is unchanged at 2033.