First-quarter U.S. GDP is expected to fall by 4.7% quarter-over-quarter on an annualized basis, following a 6.3% drop in the fourth quarter of 2008.

Capital Economics economist Paul Ashworth said the results are particularly hard to predict for this quarter. He said both consumption and trade, components that dragged down fourth-quarter GDP, are set to deliver a boost to first-quarter results. He added, however, that "it appears that the positive contributions from consumption and net external trade were nowhere near big enough to offset the collapse in investment and inventories."

In the afternoon, the Federal Open Market Committee will meet. After shocking markets in March with the decision to buy long-term Treasuries, economists are expecting the Fed to maintain the status quo.

A report from Barclays suggests that the statement "will suggest that the pace of economic contraction may be easing, although the outlook continues to be subject to more than the usual degree of uncertainty."

With interest rates already near zero, the only weapon in the central bank's arsenal remains the balance sheet, which many economists say is unlikely to expand this month.

All times in EDT.

8:30 US GDP (Q/Q) (Annualized) Q1 Advance Exp: -4.7% Prior: -6.3%

8:30 US Personal Consumption Q1 Exp: +0.9% Prior: -4.3%

8:30 US GDP Price Index Q1 Exp: +1.8% Prior: +0.5%

8:30 US Core PCE (Q/Q) Q1 Exp: +1.0% Prior: +0.9%

9:00 US Fed's Open Market Committee Meets on Interest Rates, Economy

10:30 US DOE U.S. Crude Oil Inventories W/E April 24 Exp: 1800k Prior: +3857K

10:30 US DOE U.S. Gasoline Inventories W/E April 24 Exp: 200k Prior: +802K

10:30 US DOE U.S. Distillate Inventory W/E April 24 Exp: 1000k Prior: +2682K

10:30 US DOE U.S. Heat Oil Inventories W/E April 24 Prior: -85K

10:30 US DOE U.S. Refinery Utilization W/E April 24 Exp: 0.15% Prior: +3.07%

13:00 US Treasury to Sell $26B 7-Year Notes

14:15 US FOMC Interest Rate Decision Exp: 0.13% Prior: 0.25%

By Megan Ainscow, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Sarah Sussman, This email address is being protected from spam bots, you need Javascript enabled to view it

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