Retailers in the U.S. struggled to increase sales in February as a second month of frigid temperatures and snowstorms kept many Americans closer to home, economists predict a Commerce Department report will show.
U.S. stocks rose a second week, sending the Standard & Poor’s 500 Index to a record, as better- than-forecast data on hiring and manufacturing fueled optimism in the economy and overshadowed concern on Ukraine.
Federal Reserve economists warned in December 2008 that five years could pass before growth revived enough to warrant raising interest rates from near zero, as the magnitude of the economic meltdown dawned on Fed officials.
Investors are pulling money out of exchange-traded funds that buy bonds in the U.S., with the biggest outflows from government securities as they shift into stocks, signaling a willingness to delve into riskier assets.
William Dudley, president of the Federal Reserve Bank of New York, said that while harsh weather will slow growth during the first quarter, it won’t harm the economy enough to merit slowing the tapering of bond purchases.
Federal Reserve Bank of Philadelphia President Charles Plosser, who votes on policy this year, said incremental reductions in bond purchases at each Fed meeting may be too small with U.S. growth poised to accelerate this year.
Gold traded below a four-month high in New York as investors weighed the crisis in Ukraine and the outlook for the U.S. economy before employment data due tomorrow. Palladium was near the highest price since April.