There's a lot of economic data coming out next week and the following week. One data point to watch is Friday's Employment Cost Index (ECI) report for the second quarter. This is a quarterly survey that looks at the total cost of labor in the U.S. and lately it's been accelerating.
Whereas normal wage growth, as measured by average hourly earnings, has been somewhat stagnant, the ECI is indicative of a tightening labor market. Ultimately it's reasonable to expect the two different measures to trend in the same direction. So if we get another strong and accelerating ECI, then watch out for more talk about rising wages, a tightening labor market and what that might mean for the Federal Reserve.