I was expecting GDP to be no more than +3%. The official press release is online.

GDP for 2006 was 3.4%. In perspective, it was 3.2% in 2005, and 3.9% for 2004.

The Fed meets today and they have two things to look at. First, Q4 was stronger than anticipated, holding up well with a decline in housing (the decline is nothing major: we've been at these levels before in economic expansions).

Second, the measure of inflation that is part of the GDP report was the lowest in 52 years, at -0.8%.

What does the Fed do? Declare victory over inflation and go home (I hope so). No, they will say that they are still concerned about inflation and will stay where they are.

Many "talking heads" think that they will raise rates, not now, but sometime this year. I'm still not in that camp. I expect that the economy will slow, but my expectation that they will lower rates in the end of the second quarter looks like it will be dead wrong. I still see weakness in certain macro indicators like a shrinking trade deficit.

We get lots more economic data today and tomorrow, and I'll pull it all together in Monday's column.

Friday we get December printing shipments. Look for a quick take on WTT and also a note in this blog.