Markets were treated to a plateful of U.S. economic data on Tuesday. As usual, the offerings were mixed: the New York Empire survey beat expectations, but June retail sales disappointed—but there was an upward revision to the prior month.
Bank of America/Merrill Lynch reportedly raised its second quarter gross domestic product (GDP) forecast to 3.2 percent to 3.6 percent on the retail sales figure.
Meanwhile, people were expecting a moderately hawkish tone from Fed Chairman Janet Yellen in her Congressional appearance.
Yellen hawkish? Forget about it! Yellen has never indicated that she would be more hawkish, and seems to have re-iterated this in a New Yorker interview. "And so even when the headwinds have diminished to the point where the economy is finally back on track and it's where we want it to be, it's still going to require an unusually accommodative monetary policy," the magazine quoted her as saying.