A decision by the Federal Reserve will be the highlight of the coming week, with rates expected to be left on hold and markets expected to focus on the likelihood of rate cuts in coming months as trade tariffs take their toll on the economy.

The bond market is sending a signal that the Federal Reserve should be cutting interest rates, U.S. Treasury Secretary Scott Bessent said on Thursday, noting that yields on 2-year Treasury notes were lower than central bank's policy rate.

The Treasury Secretary pointed to two-year Treasury yields as a signal that the market is ready for interest rate cuts from the Fed.