This Week: Fed meeting, Apple earns, consumer spending

A look at some of the key business events and economic indicators upcoming this week:

THE FED SPEAKS

The Federal Reserve delivers an update on interest rate policy and the economy Wednesday.

The remarks will follow a two-day meeting of the central bank’s policymakers. The Fed has been confronted with an economy gripped by recession and high unemployment due to the coronavirus pandemic. Last month, the central bank signaled that it expected to keep its key short-term interest rate near zero through 2022 and to continue buying about $120 billion in Treasury and mortgage bonds each month.

VIRUS IMPACT

Wall Street expects that Apple stumbled in its fiscal third quarter.

Analysts predict the iPhone maker will report Thursday that its earnings and revenue declined in the April-June period versus a year earlier. Apple delivered improved results in the previous two quarters of its current fiscal year. The coronavirus pandemic forced the company to shut its factories and as well as hundreds of its retail stores.

IN A SPENDING MOOD?

Americans have stepped up their spending after a deep pullback in March and April due to the coronavirus business shutdowns.

Spending rose 8.2% in May. That followed monthly declines of 6.6% and 12.6%. Economists project that consumer spending grew 5% last month. The Commerce Department issues its June tally of consumer spending on Friday.

Consumer spending, monthly percent change, seasonally adjusted:

Jan. 0.4

Feb. 0.0

March. -6.6

April -12.6

May 8.2

June (est.) 5.0

Source: FactSet