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The US is in the midst of debate over another interest rate hike. The economic climate will be scrutinized through upcoming weeks to see if the US and its slowly rebounding economy warrant another rate increase. Two major issues are the industrial production for the month of July and consumer pricing for the same month. Both will be released on Tuesday.

Managing direct of Trading at Schwab Center for Financial Research, Randy Frederick, confirmed that the Fed is going to be making a decision on tax rate increases based on the performance of those two metrics. He also confirmed that December likely is the month when interest rates will increase due to the government waiting until post-elections.

Although the beginning of 2016 was sluggish at best, recent data studies are showing a definite turnaround, with consumers looking to drive growth of the US dollar, while international demand weakens in the manufacturing industry.

This economic data is what will eventually increase the chances of a Fed rate hike. Right now the likelihood of September being the month when rates will increase is minimal, at just 12%. The Federal Reserve will also be watching the weeks closely as they may lead to the economic rate hike. On Wednesday Dennis Lockhart of the Rotary Club in Knoxville Tennessee will speak on monetary policy and the overall state of the economy. On Tuesday numbers for housing rates also will be released.

About 90% of S&P 500s have reported earnings so far this year, with most exceeding projected profit margins. This is good news for the business market, but may cause an offshoot of increased tax rates. While data is still being collected, December seems to still remain the target month for potential changes.