The latest minutes from the Federal Open Market Committee meeting will be released tomorrow and are likely to provide an indication into whether or not the Federal Reserve believe another interest rate hike is likely in 2017. There have been several members of the committee suggest they believe the hike will come this side of Christmas, however the data needs to remain strong in order for that to be the case.
Inflation Data on Friday
The latest Consumer Price Index data will be released on Friday which is a key indicator of inflation. There is expected to be a movement up to the 2.00% level which would be the first time the level has been reached in a considerable time.
Coupled with inflation data there will also be Retail Sales which is expected to show a 0.6% improvement on the previous month of August for September. Retail Sales can often indicate how consumers feel about the economy with good data showing that people are happy to spend and not save. Considering the natural disasters that have hit the US on the last month the fact the Retail Sales data is expected to rise does hold some real optimism for the US economy.
Fed Members Speaking Tomorrow
There will also be 4 members of the Federal Reserve speaking at the end of the week which should once again give an indication on the chances of a rate hike. Considering the final decision this year is only 8 weeks away the data readings this week are some of the final releases before the Fed have to make a decision. With that in mind should strong data keep coming for September and is then coupled by good data in October there may be a level of certainty surrounding a final 2017 interest rate hike.