While the current path is active, you can see its outline in the document window. In Photoshop Elements, you can't hide it by using [Ctrl+H] shortcut (fig. 1).
Furthermore, in some cases PSE doesn't allow you to use the Shape tools (fig. 2).
To get rid of this outline, you have to deactivate it by double-clicking the "Deselect Path" effect.
Later on, you will be able to re-activate it by using one of "path selecting" actions.
*In Photoshop Elements, this also means that you can't hide current shape layer outlines. To preview your design without contour, just double-click the "Deselect Path" thumbnail. On the screenshot 1, the author deselects path of the current shape layer's vector mask.