Traders will be focused on Chairman Ben Bernanke as he oversees his first Fed gathering early in the coming week. But unless he brings a big surprise, the market may see more movement after a data deluge hits the tape later on.

"The start of the week is all about the Fed and the end of the week is all about the economic data," says Paul Mendelsohn, strategist at Windham Financial. "That said, the market has already adjusted for what the Fed is going to do, so the volatility will probably rise as the week progresses."

The two-day Fed meeting kicks off Monday. The central bank has raised rates by a quarter point at each of its last 14 meetings, and it's almost universally expected to boost rates by another quarter point Tuesday. Such a move would bring the benchmark overnight lending rate to 4.75%.

With the Fed's next move almost a certainty, Miller Tabak sales trader Randy Diamond wonders how much more upside is left in equities.

"In the face of more concerning housing data, stocks rallied on hopes of a Fed slowdown but nothing has changed in the Fed's mind," says Diamond regarding Friday's lower-than-expected new-home sales numbers, which also showed that inventories had reached their highest level in 10 years. "We've already played out the 'Fed's almost done' theme."

On Tuesday morning, consumer confidence figures for March will be released. Economists surveyed by Thomson First Call are expecting a reading of 102, up from 101.7 in February. Later that afternoon, the FOMC policy statement will be announced.

Thursday sees the release of fourth-quarter final gross domestic product, which is anticipated to be revised to 1.7% from the current reading of 1.6%. The chain deflator, a key inflation gauge, is expected to remain at 3.3%.

Friday will be the biggest day for economic reports, starting with personal income and spending figures for February. Economists expect income levels to show a rise 0.4%, compared with growth of 0.7% in January. Spending is projected to have fallen 0.1% after rising 0.9% the prior month.

Also on Friday, Chicago PMI for March is expected to rise to 57 from 54.9 in February, while factory orders for February are expected to show 1.4% growth after a drop of 4.5% in January.

"It's a catch-22," says Larry Wachtel, senior market analyst at Wachovia. "If any of these numbers comes in too strong, it's going to hurt stocks because it means the Fed is going to keep hiking."

Earnings in the Background

It may be a Fed-dominated week, but a few corporate earnings reports should garner some attention.

Walgreen ( WAG) earnings will be Monday's highlight. The drugstore giant is expected to post second-quarter earnings of 52 cents a share, up from 47 cents last year, on revenue of $12.24 billion.

On Tuesday, companies taking the stage include Red Hat ( RHAT), Lennar ( LEN - Get Report) and Tibco Software ( TIBX).

Investors will also be tuning in on Tuesday to see if Tiffany's ( TIF - Get Report) fourth-quarter results sparkle. Analysts polled by Thomson First Call predict the high-end jeweler earned 84 cents a share, up from the 79 cents a share earned a year earlier, on sales of $868.2 million.

Among the companies reporting results on Wednesday are Steelcase ( SCS - Get Report), Ruby Tuesday ( RI) and Alloy ( ALOY).

Thursday's earnings lineup includes the likes of Accenture ( ACN - Get Report), CarMax ( KMX) and Best Buy ( BBY - Get Report).

Best Buy has already said its holiday results were stronger than expected, and projected fourth-quarter earnings of $1.25 to $1.30 a share, up from $1.03 last year. Analysts target earnings of $1.29 a share, with sales of $10.51 billion.