The FOMC hopes to reverse a continuing decline in corporate America's spending on computers and other capital equipment. The index of leading economic indicators rose modestly in April, its first uptick since January. However, sales also declined, meaning that even reduced inventories may be adequate to meet current demand. Wednesday's report on the Consumer Price Index suggested that inflation remains under control. Although there's concern that rising energy prices will crimp consumers' ability to spend on other items, the stock market rallied on the report.
Housing starts remain one of the brightest spots in the economy.
Jobless claims were another bright spot. Although it's unwise to make too much of a few weeks' worth of data, the report may indicate that the employment market is firming up. Due Thursday is a report on new-home sales.