U.S. Economy Providing Ammo for Higher Interest Rates

Growth picks up as summer ends, but Fed worries about rest of world

by Jeffry Bartash
Market Watch

As the dog days of summer draw to a close, the economy appears primed for somewhat faster growth in the second half of the year that’s likely to pave the way for higher U.S. interest rates.

Hiring has accelerated after a spring pause, consumer spending is steady and shows no sign of slowing, the housing market is the best it’s been in years and even the struggling manufacturing sector appears to have stabilized.

A raft of new reports this week is likely to underscore a picture. Sales of new and existing homes recently hit fresh post-recession peaks, and although the main buying season is coming to an end as school starts, sales are expected to remain strong if a toucher lower in July. Orders for long-lasting or durable goods probably also rebounded in July after two straight declines.

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