The markets will face another big test this week as the Federal Open Market Committee (FOMC) holds its two-day meeting.

This month’s FOMC meeting will yield a new policy statement, updated dot plot and a summary of economic projections. Fed Chair Jerome Powell will hold a virtual press conference at the conclusion of the event on Wednesday.

“Given the consistency of Fed comments since the April meeting, we expect few new policy developments at the June FOMC meeting,” Nomura economist Lewis Alexander wrote in a note June 5. “Instead, the Committee will likely focus on successfully implementing their already-announced credit facilities and continue discussions on the longer-term outlook for asset purchases and forward guidance.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Economists predict few changes to the Fed’s policy following this week’s meeting. The central bank will likely keep its target range for the federal funds rate between 0% to 0.25%.” data-reactid=”19″>Economists predict few changes to the Fed’s policy following this week’s meeting. The central bank will likely keep its target range for the federal funds rate between 0% to 0.25%.

“We believe the Committee’s forward guidance on the path for the target range will be unchanged from the April FOMC statement. However, next week’s new interest rate forecast ‘dots’— the first since December—could be seen as a soft way of reinforcing that guidance,” JPMorgan economist Michael Feroli wrote in a note June 5. “We look for the median dot to show no hikes through late 2022, the end of the forecast horizon. While we believe the Committee will eventually refine the guidance in the FOMC statement, recent comments from Vice Chair Clarida suggest this step won’t be taken until the fall.”

WASHINGTON, DC - APRIL 29: In this screengrab taken from the Federal Reserve website, Chair of the Federal Reserve Jerome Powell issues the Federal Open Market Committee statement on April 29, 2020 in Washington, DC. Powell said the Federal Reserve will continue to use its lending powers “forcefully, proactively and aggressively, until we’re confident that we are solidly on the road to recovery” from the economic downturn caused by the coronavirus pandemic. (Photo by Federal Reserve via Getty Images)WASHINGTON, DC - APRIL 29: In this screengrab taken from the Federal Reserve website, Chair of the Federal Reserve Jerome Powell issues the Federal Open Market Committee statement on April 29, 2020 in Washington, DC. Powell said the Federal Reserve will continue to use its lending powers “forcefully, proactively and aggressively, until we’re confident that we are solidly on the road to recovery” from the economic downturn caused by the coronavirus pandemic. (Photo by Federal Reserve via Getty Images)
WASHINGTON, DC – APRIL 29: In this screengrab taken from the Federal Reserve website, Chair of the Federal Reserve Jerome Powell issues the Federal Open Market Committee statement on April 29, 2020 in Washington, DC. (Photo by Federal Reserve via Getty Images)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="In response to the COVID-19 pandemic, the Fed deployed a slew of emergency actions over the past few months to support markets, and Powell has stated that the Fed still has more that it could do if necessary.” data-reactid=”32″>In response to the COVID-19 pandemic, the Fed deployed a slew of emergency actions over the past few months to support markets, and Powell has stated that the Fed still has more that it could do if necessary.

In addition, there has been recent speculation that the Fed would do yield-curve control (YCC), which is a program to keep short-term interest rates capped at a certain level. Despite the chatter, Wells Fargo argued that YCC will be unlikely in June.

“In our view, the current conditions do not signal an immediate need for the FOMC to implement an explicit yield target at any point on the curve,” the firm wrote in a June 1 note. “The Federal Reserve is still working to get all of its previously-announced facilities fully operational. We think the committee may want to allow some time for all of these facilities to help the flow of credit to households, businesses and state & local governments before considering yield curve control.”

The earnings calendar remains light this week. Stitch Fix, Lululemon, Adobe, Tiffany & Co and Chewy are among the biggest names gearing up to report earnings this week.

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Economic calendar” data-reactid=”36″>Economic calendar

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Monday: N/A” data-reactid=”37″>Monday: N/A

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Tuesday: NFIB Small Business Optimism, May (92.2 expected, 90.9 in April); JOLTS Job Openings, April (5750 expected, 6191 in March); Wholesale Inventories month-on-month, April final (+0.4% expected, +0.4% prior)” data-reactid=”38″>Tuesday: NFIB Small Business Optimism, May (92.2 expected, 90.9 in April); JOLTS Job Openings, April (5750 expected, 6191 in March); Wholesale Inventories month-on-month, April final (+0.4% expected, +0.4% prior)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Wednesday: MBA Mortgage Applications, week ended June 5 (-3.9% prior); CPI month-on-month, May (0.0% expected, -0.8% in April); CPI excluding Food &amp; Energy, May (0.0% expected, -0.4% in April); CPI year-on-year, May (+0.3% expected, +0.3% in April); Monthly Budget Statement, May (-$625 billion expected, -$737.9 billion in April)” data-reactid=”39″>Wednesday: MBA Mortgage Applications, week ended June 5 (-3.9% prior); CPI month-on-month, May (0.0% expected, -0.8% in April); CPI excluding Food & Energy, May (0.0% expected, -0.4% in April); CPI year-on-year, May (+0.3% expected, +0.3% in April); Monthly Budget Statement, May (-$625 billion expected, -$737.9 billion in April)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Thursday: PPI Final Demand month-on-month, May (+0.1% expected, -1.3% in April); PPI excluding Food &amp; Energy month-on-month, May (-0.1% expected, -0.3% in April); PPI Final Demand year-on-year, May (-1.3% expected, -1.2% in April); Initial Jobless Claims, week ending June 6 (1.55 million expected, 1.88 million prior); Continuing Claims, week ending May 30 (20.6 million expected, 21.49 million prior); Bloomberg Consumer Comfort, week ending June 7 (37.0 prior)” data-reactid=”40″>Thursday: PPI Final Demand month-on-month, May (+0.1% expected, -1.3% in April); PPI excluding Food & Energy month-on-month, May (-0.1% expected, -0.3% in April); PPI Final Demand year-on-year, May (-1.3% expected, -1.2% in April); Initial Jobless Claims, week ending June 6 (1.55 million expected, 1.88 million prior); Continuing Claims, week ending May 30 (20.6 million expected, 21.49 million prior); Bloomberg Consumer Comfort, week ending June 7 (37.0 prior)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Friday: Import Price Index month-on-month, May (+0.6% expected, -2.6% in April); University of Michigan Sentiment, June preliminary (75.0 expected, 72.3 in May)” data-reactid=”41″>Friday: Import Price Index month-on-month, May (+0.6% expected, -2.6% in April); University of Michigan Sentiment, June preliminary (75.0 expected, 72.3 in May)

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Earnings calendar” data-reactid=”46″>Earnings calendar

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Monday: Stitch Fix (SFIX) after market close” data-reactid=”47″>Monday: Stitch Fix (SFIX) after market close

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Tuesday: Signet Jewelers (SIG), Tiffany &amp; Co (TIF) before market open; Chewy (CHWY), GameStop (GME) after market close” data-reactid=”48″>Tuesday: Signet Jewelers (SIG), Tiffany & Co (TIF) before market open; Chewy (CHWY), GameStop (GME) after market close

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Wednesday: N/A” data-reactid=”49″>Wednesday: N/A

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Thursday: Children’s Place (PLCE) before market open; Adobe (ADBE), Dave &amp; Buster’s (PLAY), Lululemon (LULU), PVH Corp (PVH) after market close” data-reactid=”50″>Thursday: Children’s Place (PLCE) before market open; Adobe (ADBE), Dave & Buster’s (PLAY), Lululemon (LULU), PVH Corp (PVH) after market close

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Friday: Party City (PRTY)” data-reactid=”51″>Friday: Party City (PRTY)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="” data-reactid=”52″>

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter:&nbsp;@heidi_chung.” data-reactid=”53″>Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="More from Heidi:” data-reactid=”54″>More from Heidi:

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Find live stock market quotes and the latest business and finance news” data-reactid=”59″>Find live stock market quotes and the latest business and finance news

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Follow Yahoo Finance on&nbsp;Twitter,&nbsp;Facebook,&nbsp;Instagram,&nbsp;Flipboard,&nbsp;LinkedIn, and&nbsp;reddit.” data-reactid=”60″>Follow Yahoo Finance on TwitterFacebookInstagramFlipboardLinkedIn, and reddit.