The Fed is meeting next week and there is a lot of buzz about the removal of “considerable time” from their recent statement signaling that the rate hike may come sooner than previously thought. This week a lot of important economic data was overlooked by sensational non-economic news, but the tea leaves are sending out complex messages.
Charge It
On one hand, people are beginning to use credit cards again and borrowing money for more than just cars and student loans. From March 2013 to March of this year, consumers tepidly increased revolving credit by $12.0 billion, but in the last four months, they have since increased revolving credit by $19.0 billion.
Take This Job
On the other hand, the amount of people quitting their jobs in July climbed to the highest level since June 2008; Approximately 2.52 million people told their boss, “See ya later.” There is no doubt that this is high on Janet Yellen’s radar. However, the quits are not keeping up with the pace of job openings which suggest that there is not yet the kind of confidence that underpins a strong economy.
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