Resilient US Economy Fuels Expectations for Another Interest Rate Hike

The US economy continues to show resilience, with key economic data expected to further bolster the case for another interest rate hike in October.

Following recent data showing a sharp increase in US retail sales in August and the fastest pace of business activity in more than five years in September, market expectations for another rate hike as early as October have already risen.

The core personal consumption expenditures (PCE) price index is forecast to rise 0.3% month over month, picking up pace from the previous two months.

On Friday, the latest nonfarm payroll data will be released, with expectations pointing to continued solid job growth of roughly 90,000 jobs in September.