Retail sales posted a surprising increase in February as consumers refused to let snowstorms stop them from stepping up purchases for everything from clothes to appliances. The improvement provided hope that the recovery from the Great Recession is gaining momentum.

Some economists cautioned that spending increases will remain modest as long as wages stay flat and job creation weak. But others said the fourth gain in retail sales in five months meant consumers are starting to spend with more confidence.

"This is more than a one-month wonder," said Stuart Hoffman, chief economist at PNC Financial in Pittsburgh. [Read the full article]

President Barack Obama's likely choice of Janet Yellen to become vice chairman of the Federal Reserve would favor a policy that stresses low interest rates to ease unemployment over higher rates to curb inflation.

Obama is also considering filling two other Fed vacancies with officials who would boost its ranks of Ph.D. economists and deepen its expertise over financial regulation.

If nominated by Obama and confirmed by the Senate, the three would serve at the Fed during a delicate time: Making sure the recovery from the worst and longest recession since the 1930s becomes firmly rooted. [Read the full article]

Mixed economic reports held the stock market to only modest moves Friday but gains for the week were strong.

Uneven figures on retail sales and consumer confidence gave investors little new insight into the economy.

The reports weren't enough to propel the market higher a day after the Standard & Poor's 500 index closed at its highest level in 17 months. That index slipped Friday, but the Dow Jones industrial average tacked on nearly 13 points.

Major stock indicators climbed for the week after investors grew more upbeat about the health of banks. Shares of Citigroup Inc. rose 13.4 percent for the week.

Stocks had been modestly higher at the start of trading Friday after a surprising increase in February retail sales. The Commerce Department said retail sales rose 0.3 percent last month. Analysts had expected a drop.

A weaker report on consumer sentiment disappointed traders. [Read the full article]

An accounting gimmick called Repo 105 provided financial relief for Lehman Brothers in the months before its spectacular collapse, an autopsy of the once-venerable Wall Street house has found. The question now is whether the trickery spells legal jeopardy for executives of Lehman or its auditors Ernst & Young.

The implosion of Lehman Brothers Holdings Inc. into the biggest bankruptcy in U.S. [Read the full article]