This could be the most important week for Ben Bernanke, chairman of the Federal Reserve Board, since he became the nation's top central banker in February. It might also be a volatile week for stocks. That's because on Wednesday and Thursday, the Fed's monetary policy committee will set the nation's interest-rate policy.
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Monday, June 26:
NEW-HOME SALES: This morning, the Commerce Department will release its latest sales data on newly constructed homes. Weaker-than-expected demand for new homes could raise concerns about an economic slowdown.
EARNINGS TO WATCH: CKE Restaurants, Lennar, and Walgreen
Tuesday, June 27:
ECONOMIC FORECAST: Today, the Bond Market Association shares its midyear outlook for the U.S. economy. Pay close attention to the association's forecast of inflation, as bond investors tend to fear inflation the most.
CONSUMER CONFIDENCE: The Conference Board will reveal the mood of American consumers when it releases the latest results of its monthly index of consumer confidence.
EARNINGS TO WATCH: Nike
Wednesday, June 28:
FED MEETING: Today, the Fed begins a critical two-day meeting, the most important session for the central bank since Ben Bernanke replaced Alan Greenspan as chairman. In recent weeks, Bernanke and other Fed officials have been sounding surprisingly hawkish on inflation. If the Fed doesn't back up this tough talk with a rate hike, Bernanke will lose credibility on Wall Street. If he sounds too hawkish, however, he could cause a short-term sell-off in the markets.
EARNINGS TO WATCH: 3Com, ConAgra Foods, McCormick, Micron Technology, and Red Hat
Thursday, June 29:
FED RATE DECISION: The Fed's monetary policy committee will gather for Day 2 of its regularly scheduled meeting. An announcement on interest rate policy is expected about 2:15 pm EDT. While many assume the Fed will raise short-term interest rates, how the Fed explains its decision will be just as important as what the Fed ultimately decides.
GDP RELEASE: The Commerce Department will release its final figure for first-quarter economic growth. The government's preliminary assessment of gross domestic product showed that the economy grew at an annual rate of 5.3 percent in the first three months of this year.
WHITE HOUSE VISIT: Japanese Prime Minister Junichiro Koizumi is scheduled to meet with President Bush at the White House today.
EARNINGS TO WATCH: Accenture, Constellation Brands, General Mills, Monsanto, Palm, and Research In Motion
Friday, June 30:
CONSUMER SENTIMENT: This morning, it's the University of Michigan's turn to analyze the mood of consumers. School officials will unveil their reading of consumer sentiment for the month of June.
