- Janet Yellen, Fed Chairwoman
Americans increased their spending in November, signalling enough momentum in the world's number one economy for the Fed to hike rates as soon as this week for the first time in almost a decade. According to the Commerce Department, retail sales excluding automobiles, gasoline, building materials and food services climbed 0.6% following an unrevised 0.2% growth in October. The core retail sales correspond most closely with the consumer spending component of GDP. Overall retail sales climbed 0.2% last month as automobile sales declined, while cheaper gasoline affected receipts at service stations. Auto sales fell 0.4% in November, the biggest decrease since June, after dropping 0.3% in October. At the same time, receipts at service stations declined 0.8% following a 1.0% slide in October.
A separate report showed, US producer prices for final demand climbed 0.3% in November, the biggest increase in five months. In the twelve month through November, wholesale dropped 1.1%, compared with a 1.6% decrease in October. Fed policy makers are expected to hike interest rates at their meeting this week for the first time in nearly a decade, resting on a much-improved labour market but without strong evidence inflation is firming.
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