October Rate Hike Gains Momentum on Strong US Economic Data

US economic data this week is expected to provide further evidence of a strengthening economy, potentially bolstering arguments for an interest rate hike as soon as October. According to several Federal Reserve officials, recent retail sales and business activity figures have been impressive.

The August retail sales jumped, while business activity in September rose at the fastest pace in more than five years. This trend is expected to add weight to the case for a rate increase sooner rather than later.