Yellen reiterates patience in raising rates

WASHINGTON » Federal Reserve Chairwoman Janet Yellen said Tuesday that the U.S. economy is making steady progress but that for now the Fed will remain patient about raising interest rates because the job market is still healing and inflation is too low.

In her semiannual economic report to Congress, Yellen sought to explain how the Fed would begin raising rates from lows near zero and what it would do to prepare financial markets. The Fed’s continuing use of the word "patient" means a rate hike is unlikely for at least the next two meetings, she said.

But even when the Fed eventually drops the use of "patient," Yellen said that will not necessarily translate to an imminent rate increase. Rather, it will indicate that the Fed can start considering rate hikes on a "meeting-by-meeting basis."

Macy’s profits decline amid slower sales

NEW YORK » Macy’s delivered a disappointing full-year profit outlook Tuesday as the department store chain reported sluggish sales for the holiday quarter.

The department store chain, which also operates the upscale Bloomingdale’s chain, has been a standout among its peers throughout the economic recovery and has reaped the benefits of its strategy to tailor merchandise to local markets. But the company is seeing slower sales growth as it grapples with intense competition online and shoppers’ focus away from clothing and more toward gadgets and other categories.

In the fourth quarter Macy’s earned $793 million, or $2.26 a share. That compares with earnings of $811 million, or $2.16 a share, last year, when the company had more shares outstanding. Revenue rose nearly 2 percent to $9.36 billion.

The department store operator said it expects fiscal 2015 earnings to range between $4.70 and $4.80 per share. Analysts expect, on average, earnings of $4.83 per share, according to FactSet.

JPMorgan to close 5% of bank branches

NEW YORK » JPMorgan Chase plans to close 300 bank branches over the next two years, about 5 percent of the total, as more customers move online and the bank seeks to cut costs.

The closures are part of a $1.4 billion cost-cutting plan the bank announced for this year. The latest developments were revealed during the bank’s annual investor day conference Tuesday.

Online and mobile banking have become increasingly popular, and that trend is expected to continue. The shift online has begun to make brick-and-mortar branches staffed full of tellers less necessary and more expensive.

Smaller inventory boosts U.S. home prices

WASHINGTON » U.S. home prices rose in December at a faster pace than the previous month, likely because of a much smaller number of homes for sale.

The Standard & Poor’s/Case-Shiller 20-city home price index, released Tuesday, increased 4.5 percent in December compared with 12 months earlier. That is up from 4.3 percent in November and the same as October’s annual increase. The small gain comes after price increases had slowed for 12 straight months.

Americans are listing fewer homes for sale, pushing up prices and keeping many houses out of reach for would-be buyers. Home prices are rising faster than most Americans’ wages, slowing sales even as hiring strengthens, consumer confidence grows and mortgages stay low.

ON THE MOVE

Hawaiian Building Maintenance has promoted the following employees: 

» Jarrett Walters to senior vice president of operations and business development. He joined the company in 2006 as director of retail operations and was promoted to executive director of building services and vice president of operations.

» Craig Peterson to vice president of engineering operations. He joined HBM as a regional chief engineer in October 2012. Peterson also served as the regional director of engineering in the Pacific Northwest for Destination Hotels and Resorts.