Fed would still like further evidence of growth

The Federal Reserve got the green light it needed to raise interest rates this month – and then some – when Friday's employment report for November recorded a better-than-expected 211,000 job gains.

But Fed policymakers would feel even more comfortable if they knew that this year's pillars of economic growth -- American consumers and workers -- are continuing to make headway.

A light week of economic news could provide that warm feeling as the government releases reports on consumer credit, retail sales and employee movements in the labor market.

Although consumer spending has advanced nicely this year, Americans have used their credit cards sparingly after building up massive debt in the years leading up to the Great Recession in 2007-09. Households, of course, needed to shave debt to establish a more solid financial footing, but moderately higher credit card usage would bolster consumption and the economy. Most of the growth in consumer credit during the recovery has been in auto and student loans. Americans pulled out the plastic more freely in 2015, though still at modest levels compared to before the downturn. Economists expect the Fed on Monday to report a solid $18 billion rise in total consumer credit in October, after a $28.9 billion increase the previous month.

The labor market also has advanced despite headwinds that have lingered since the recession. While net payroll growth has been strong and job openings have approached or exceeded pre-recession highs, the numbers of hires and quits -- workers leaving one job for another -- have lagged. A rise in the number of quits would be a sign of a dynamic market in which people feel confident enough to take a risk. After steadily growing since the recession, the number of job quitters has leveled off this year at 2.7 million a month, perhaps the result of a persistent caution or modest wage growth that has failed to entice them to make a move. Such turnover itself can spur higher wage growth, and so the Fed will be looking for a pickup in quits when it reviews the Labor Department's Job Openings and Labor Turnover Survey for October, slated to be released Tuesday.

The steady job growth, along with cheap gasoline and reduced household debt, have spurred a solid increase in retail sales this year, though a core measure that strips out volatile categories like autos and gasoline has risen modestly in recent months. Economists reckon shoppers gearing up for the holidays picked up the pace in November, and expect the Commerce Department on Friday to report a healthy 0.5% rise in that core reading, along with a 0.3% increase in overall sales.