Overview: GDP grew at a 3.2% annual rate in the 4^th quarter of 2010.  The FOMC held constant its 0.0%-0.25% target for the federal funds rate.  Durable orders fell 2.5% in December.  The S&P/Case-Schiller home price index fell 1.6% in November.  New home sales rose 17.5% in December.  Pending home sales increased 2.0% in November.  Consumer confidence was mixed in January.  Initial jobless claims rose by 51,000 to a level of 454,000 for the week ended 1/22.

• GDP grew at a real, annualized rate of 3.2% in the 4^th quarter of 2010, according to the advance estimate.  See chart below for breakdown of contributions to GDP growth by sector. 
• The FOMC decided to hold constant its current policies, including continuation of its new $600 billion Treasury purchase program (QE2), and its target federal funds rate range of 0.0%-0.25%.  The federal funds rate has been at a record-low rate for a record-long time of 25 months.  The next longest period over which the federal funds rate was unchanged was 18 months (from March 1997 to September 1998) at a level of 5.5%. 
• Durable orders fell 2.5% in December, driven by a large decline in aircraft orders; excluding transportation, orders were up 0.5%.   
• The S&P/Case-Schiller home price index (20-city composite) was down 1.6% in November (on a year-over-year basis).  The index fell 0.54% for the month.   
• New home sales rose by a greater-than-expected 17.5% to an annual pace of 329,000 units in December.   
• Pending home sales surprised on the upside with a 2.0% increase in November.   
• Consumer confidence reports were conflicting for January: the Conference Board measure of consumer confidence jumped 7.3 points to 60.6 in January while the University of Michigan measure of consumer sentiment edged down 0.3 point to 74.2. The two measures differ somewhat in their emphasis on sectors of the economy and on their time-frame of expectations.  In general, the Conference Board measure of consumer confidence more heavily weighs consumers’ expectations for employment and includes expectations six months in advance while the Michigan measure of consumer sentiment places more emphasis on financial conditions and includes expectations one year in advance.   
• Initial jobless claims jumped up 51,000 to 454,000 for the week ended January 22^nd.