No change from the Fed’s prior monetary policy positions was announced.

The Advance Report for fourth quarter Real GDP was released last week. The BEA reported the economy grew at a 4.0% rate for the quarter. This follows the 33.4% increase in the third quarter, and was more than double our forecast of 1.7%. We based our forecast on the expectation that consumer service sector spending would decline given the closing of many locations such as restaurants and bars. The report last week indicated service sector spending increased by 4% in the quarter. This growth was driven by a $62.2B increase in healthcare services and a $59.0B rise in household services. Transportation and food services declined by $4.3B and $13.5B respectively.