Broad based retail sales improvements affirm strength of consumer

Retail sales rose a solid 0.6 percent in July to the highest monthly level ever - $446.5 billion. May and June were also revised upward, affirming the strength of the consumer, and if the Fed is looking for a reason to delay raising rates they won't find it in this report. Sure the latest China devaluations have caused market jitters and cast doubt on a September hike but there will always be an excuse if you look for one.

 A Fed rate hike will be a vote of confidence for the economy and may actually strengthen the economy by getting "wait and see" consumers, investors, and businesses off the bench. The level and pace of the Fed's hikes will likely be gradual and slower than previous tightening cycles so don't bail on bonds - they are there when you need them in volatile markets, says Voya Global.