Next Wk/US:Advance GDP, Tsy Auctions, FOMC Meeting, Mich, Case Market News International
PRINCETON (SMRA) - The week ahead is centered on the Federal Open Market Committee meeting that takes places Tuesday and Wednesday, and the monetary policy statement that will follow Wednesday afternoon.There is a fair amount of economic data, but little that will stir up a lot of market interest before Friday's release of the advance estimate of first quarter GDP.
The U.S. Treasury will be auctioning the last round of coupon issues before the quarterly refunding conference takes place. Wall Street will be watching the abundance of earnings reports set for release over the course of the week.
Tuesday and Wednesday's FOMC meeting is not expected to result in more than incremental changes to the statement when it is released. The Committee is likely to do no more than note improvements in economic conditions are still subject to significant risks and that inflation remains subdued.
Kansas City Fed President Hoeing will more than likely register his third consecutive dissent against the "extended period" language unless a compromise is worked out. We do not think that it will change at this meeting, but will almost certainly evolve over the course of the summer.