PREVIEW: GDP Highlights Busy Data Week October 24-28

(RTTNews) - The U.S. economy is in a happy space. Incoming economic evidence is vouching for the economy's vibrancy, which ironically is leaving traders rattled. Will the Fed construe the data points as strong enough to announce a second hike in the current rate tightening cycle? Meanwhile, the Fed isn't in the driver's seat either- Will a potential hike jeopardize the steady recovery or staying too long at low rates risk a potential steeper path for interest rates in the future instead of the gradual path preferred for removing monetary policy accommodation.

Essentially, the Fed is caught between the devil and the deep sea. The unenviable task at hand for the central bank is to determine which of the two is a less riskier choice.

Inflationary data points of recent times support the case of a near term tightening. The consumer price inflation report released last week showed a strong increase in the headline number in September, with energy and shelter costs propping up the number. However, the core reading was benign.

The manufacturing sector is a little wishy-washy. The first glimpse of manufacturing conditions of September wasn't anything to write home about. The New York area manufacturing activity contracted deeper into the negative terrain and industrial production data for September was just about ok.

Meanwhile, the housing market is on a roll, with homebuilder sentiment for October coming in line with expectations and housing starts & building permits for September remaining buoyant. The Beige Book also confirmed life in the economy.

The unfolding week offers another opportunity to take stock of the economy and its health and the scorecards of several reports would help to determine whether the Fed will act in December or not?

Stay tuned to the unfolding week's Main Street calendar…..

Here are the Economic Data in Spotlight for October 24-29