Key Economic Indicators to Watch This Week: Fed Set to Maintain Rates, Earnings Still Under Spotlight

Key Takeaways

• The Federal Reserve is expected to keep interest rates unchanged at 4.25%–4.5% on Wednesday.
• Major tech and crypto firms report earnings this week as investors await Palantir and AMD.
• The Bank of England’s meeting and China trade figures are also hot topics this week.

As investors steel themselves for a week packed with central bank signals and high-stakes earnings, the mood is one of cautious anticipation.

From Fed officials walking a tightrope on inflation to tech giants navigating geopolitical headwinds, the coming days could offer critical clues about where monetary policy, markets, and corporate momentum are headed next.

Fed to Leave Interest Rates Unchanged

Analysts anticipate the Federal Open Market Committee will hold interest rates steady at its meeting on Wednesday, maintaining the current 4.25%-4.5% range.

Any changes in the statement or press conference will likely alter expectations for a rate cut in December.

“Our focus is on the statement, and more importantly, what Fed Chair Jerome Powell says in his post-meeting statement,” Oxford Economics analysts told CCN.

“Powell will stick with the mantra that the Fed needs more information, keeping its communication data-dependent rather than offering tangible forward guidance,” they added.

Looking ahead to next year, markets expect the Fed to begin lowering rates more significantly as the effects of tariff-related inflation subside and labor market conditions potentially weaken.

Despite this outlook, policymakers may emphasize the importance of anchoring inflation expectations, which will likely signal that rate cuts are not imminent.

Earnings Under Investor Spotlight

Earnings season continues this week with a spotlight on key players in tech and crypto. Palantir reports after the bell Monday, with investors watching closely for signals about enterprise demand for AI-driven software amid growing commercial adoption.

Tuesday brings results from chipmaker AMD, which faces headwinds from escalating trade restrictions on semiconductor exports to China. The company has warned that such limits could weigh its earnings by as much as $800 million.

Coinbase will report later in the week, offering a read on retail and institutional engagement in crypto markets as regulatory uncertainty and price volatility persist.

E-commerce platform Shopify will also release its numbers, which will shed light on online retail trends and the company’s push into logistics and AI.

Other notable tech and digital-first companies reporting include DoorDash, Carvana, and video game developer Electronic Arts. Traditional heavyweights like Ford and Disney are also on the docket.

Other Indicators to Monitor

Among other indicators to monitor, the ISM non-manufacturing PMI for April, due Monday, will offer a first look at business sentiment following Trump’s new tariffs.

On Thursday, the focus shifts to the Bank of England. Despite sticky inflation, the BoE has cut rates less aggressively than the European Central Bank or the Fed. At its last meeting on March 20, it opted for no change and warned against assuming imminent cuts.

Since then, UK GDP has risen to the upside, inflation has eased slightly but stayed well above target, and PMIs have signaled economic uncertainty.

Governor Bailey acknowledged risks from tariffs but said a recession isn’t imminent. A rate cut is widely expected, but markets may overestimate how dovish the BoE will be. If projections are less grim than anticipated, the pound could strengthen.

Meanwhile, investors will closely watch China’s April trade data on Friday. Factory activity recently contracted at the fastest pace in over a year, and weak export figures could spur stimulus hopes.

Given their trade ties with China, this might pressure the Aussie and Kiwi and boost gold as markets speculate that China will reduce its reliance on the dollar.