Yellen to Testify on Economy, Rates

Federal Reserve Chair Janet Yellen testifies before Congress this week on the economy in a hearing that should clarify whether the Fed remains on track to hike interest rates next month after Donald Trump’s win in the presidential race, Yahoo reported. Meanwhile, reports on retail sales, inflation, industrial production and housing starts will provide the Fed a window onto the economy that could help determine whether it acts at a mid-December meeting. Retail sales surged in September on rising gasoline prices and stronger auto purchases, but a core measure that strips out such volatile categories edged up just slightly after two straight declines. Consumers, however, are generally on solid footing after this year’s steady job growth and solid wage gains, which accelerated in October. Economists expect the Commerce Department on Tuesday to report that retail sales jumped another 0.6% last month while a core reading bounced back, advancing a healthy 0.4%.