Dive Brief:

• With conflicting evidence about the U.S. economy’s health, it’s unclear whether an interest rate hike expected in December will actually materialize.

• Wage stagnation, subdued consumer spending, a strong dollar, and global economic stumbles are contributing to speculation that the Federal Reserve will leave interest rates alone, with such forces acting to rein in interest rates on their own.

• In September the Fed surprised many by articulating just how the U.S. didn’t need the braking mechanism of an interest rate hike.

Dive Insight:

Raising interest rates is a way to keep an economy simmering along healthily without boiling over. But the U.S. economy is in a precarious position — hung up somewhat by the iffy global economy and wage stagnation — between growing and stalling.

There’s not all that much the U.S. could do about economies abroad. But the income issue continues to be a factor worth mentioning by the Federal Reserve and other economists.

"Stronger income growth is needed to support stronger consumer spending," Jennifer Lee, a senior economist at BMO Capital Markets in Toronto, told Reuters.

Keeping interest rates down is mostly good news for retailers, whose customers (and own operations) won’t be facing increased rates on loans heading into the holidays.

But the strong dollar will also continue to be an issue for retailers that source their merchandise from abroad or that sell to international customers.