This week: Budget deficit, Fed meeting, Macy's earnings

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

A STEP BEHIND

Macy's reports preliminary earnings for the first quarter Tuesday and expectations are low.

Macy’s and other mall-based clothing chains have struggled to adapt to store closures due to the coronavirus pandemic. Macy’s has already said sales were down 45% and that it could have a loss of at least $1 billion in the quarter.

Due to business disruptions because of the coronavirus pandemic, the New York-based retailer pushed back its full first-quarter earnings release to July 1.

FEDERAL RESERVE MEETS

Most observers expect that Federal Reserve officials will make few changes to their interest rate policy when it meets Tuesday and Wednesday, keeping rates pinned near zero.

Fed policymakers are expected to debate potential future steps such as setting a more explicit timetable for how long they might continue purchasing billions of dollars in Treasurys and other securities and when they might raise interest rates.

Chair Jerome Powell may also announce further details about the Fed’s lending programs, including its Main Street program for medium-sized businesses.

DEFICITS PILING UP

Also on Wednesday, the Treasury Department releases U.S. budget deficit data for May.

The federal government piled up a record deficit of $737.9 billion in April, traditionally a month of big budget surpluses. The sea of red ink is being created by a drop in revenue and a massive increase in spending to fund relief efforts due the coronavirus pandemic.

The deficit so far for the fiscal year that began Oct. 1 climbed to $1.48 trillion last month. Analysts surveyed by FactSet expect a deficit of $680 billion for May.

U.S. budget deficit by month:

Nov. -$208.9 billion

Dec. -$13.3 billion

Jan. -$32.6 billion

Feb. -$235.3 billion

March -$119 billion

April -$737.9 billion

Source: FactSet