This past week's data point of significance for investors has to be the revised, final, fourth quarter U.S. GDP report, which indicated the world's largest economy grew 3.1% in the quarter, as well as 2.9% for 2010.

In 2009, the U.S. economy contracted 2.6% during the Great Recession -- the worst downturn since the Great Depression -- and even though the final 3.1% fourth quarter stat was better than the 2.8% previously estimated fourth quarter growth rate, the growth pace still is not strong enough.

The Federal Open Market Committee (FOMC) meets again this week to review economic conditions and set monetary policy. On whether the Fed should end quantitative easing or extend it, Atlanta Fed chairman Dennis Lockhart recently said that the Fed should remain flexible given the rising energy prices, which could be a sign of coming inflation. Either at this meeting or the next, the Fed could signal that interest rates will rise as a hedge against inflation.

Inflation will also be the focus when the Department of Labor releases the Producer Price Index (PPI) and Consumer Price Index (CPI) this week. Back in January the core PPI (which excludes energy and food costs) had its biggest jump in two years, and the core CPI had its largest uptick in more than year, the second month in a row in which consumer prices jumped.

One economic data point that sort of slipped under the radar recently concerned the U.S. Federal Reserve's $78.4 billion payment to the U.S. Treasury in 2010, up about 65% from $47.4 billion in 2009.

And the reason for the revenue surge? Experienced investors or others who have reviewed the Fed's report will realize that much of it stems from income from the Fed's purchase of mortgage securities and Treasury securities in connection with the quantitative easing, part 2 program, or QE2.

Under QE2, the Fed will purchase up to $600 billion in assets from November 2010 to June 2011 -- this coming after the Fed purchased $1.7 trillion in assets through March 2010.

Has the U.S. Federal Reserve's tone regarding its stance toward its asset purchase program(quantitative easing part 2, or QE2), changed?

From the recent comments of Federal Open Market Committee members, it's tough to detect a shift.

For investors, the Fed's QE2 tone is hardly insignificant. A Fed signal that an unwinding of asset purchases is likely before June would affect U.S GDP growth expectations, and, by extension, corporate revenue expectations of many firms for the second half of 2011.

The verdict on the U.S. Federal Reserve's quantitative easing program, including part 2, or QE2, will not be rendered for years. It may be longer, given the many areas of financial and economic policy the program has touched.

Anyone who says they definitively and incontrovertibly know QE2's long-term impact is not being genuine: many more data points have to occur to judge, for example, how QE2 affected banker lending psychology, let alone its impact on the U.S. economy.

That said, we can glean clues and insights by looking at current conditions, and one short-term data point reveals that since Fed Chairman Ben Bernanke disclosed the implementation of QE2 on August 27, the S&P 500 is up 17%, Bloomberg News reported Friday.

Federal Reserve Chairman Ben Bernanke will appear on 60 Minutes this Sunday to defend his controversial stimulus package, dubbed QE2, of buying $600 billion of Treasury securities.

In the CBS interview, Bernanke explains his intentions with QE2 and defends the notion that this stimulus will not lead to inflation. He also told CBS that he is not ruling out the purchase of more securities.

The Federal Reserve Open Market Committee (FOMC) issued its statement indicating again that interest rates will remain low for an extended period of time and that proceeds of Treasury securities will continue to be re-invested into additional Treasury securities.

There will also be additional quantitative easing. This will take the form of the purchase of an additional "$600 billion of longer-term Treasury securities by the end of the second quarter of 2011, a pace of about $75 billion per month," according to the Fed's statement. This was well within the $500 billion to $1 trillion range expected by many economists and strategists. Thus, the current program appears to be largely discounted by the market.

Almost everybody believes the Federal Reserve is about to implement another round of stimulus. And the reasons cited in favor of such a move are many. One argument put forth is a fear of deflation, as reported in the article by CNNMoney/Fortune. Well, with GDP at 2% for the last quarter, the economy is slow, but it is not sinking into deflation.

Then what is the Fed up to? Why do another round of stimulus? Let's try this argument. The plans are to print perhaps another trillion dollars by buying Treasuries. When the Fed buys Treasuries, the money goes directly to the bankers. The $64,000 question is why give all this money to the bankers?

Goldman Sachs (GS) was out with a note on Friday recommending that clients buy long-dated Treasuries ahead of the Federal Reserve quantitative easing announcement, which will take place on Wednesday.

Previously, the consensus was that the Fed would focus on shorter maturity bond purchases. Goldman, however, believes that the purchases will extend out to the 30-year bond.

It will be a busy week. Republicans are poised to gain control of the House of Representatives and gain governorships in Tuesday's mid-term elections. Also, the Federal Reserve is expected to announce another round of quantitative easing Wednesday, following the FOMC meeting. Major retailers are scheduled to report October same-store sales Thursday, while the October unemployment rate, announced on Friday, is expected to remain at 9.6%.

Toyota's (TM) fiscal second-quarter results will be one of the highlights on the earnings front this week. After three periods of way underestimating Toyota's earnings, have the analysts surveyed by Thomson Reuters got it right this time? The stock sure could use a boost. Teva Pharmaceuticals (TEVA) is in a similar situation; i.e., high expectations for this week's quarterly results but a stock in need of a boost. Marathon (MRO) and Starbucks (SBUX) are also expected to post strong earnings growth this week, but both stocks are riding high.

With only a few days left before the Federal Reserve meeting on November 2-3, speculation is rampant concerning whether the Fed will ease, and if so how much.

Here are a few scenarios, as reported in Reuters:

• The general consensus is that the Fed will do some kind of quantitative easing, dubbed QE2.
• Some think it will be $500 billion for five months with more if needed.
• Others think it could be $750 to $1 trillion.
• Will it be open ended with $100 billion per month?
• Perhaps it will be $500 to $750 billion with more if needed.

Atlanta Federal Reserve Bank President Dennis Lockhart put forth his proposal for a new round of quantitative easing, dubbed QE2. He sees the Fed purchasing $100 billion in treasuries per month. Lockhart made his statement in an interview on CNBC and is reported by Reuters.

Lockhart is the third Fed official to come forth in favor of easing. Last week we heard from Charles Evans and William Dudley who both favor QE2.

U.S. Federal Reserve Chairman Ben Bernanke gave his reasons for more quantitative easing, dubbed QE2, in a speech at the Federal Reserve Bank of Boston, and reported in the Wall Street Journal.

The linchpin of his thesis is that inflation is too low, currently running at 1.1%. This is lower than the 2% level that the Fed had previously set.

Bernanke gave a rather gloomy assessment of the economy, saying that business spending has slowed, consumer finances are improving unevenly, housing remains depressed and job growth isn't enough to bring down unemployment.

The U.S. Federal Reserve is in a quandary about how to explain its anticipated quantitative easing stimulus, dubbed QE2. Officials worry that an added stimulus will create unwanted inflation.

Fed officials Charles Evans and William Dudley have spoken in favor of the new stimulus. Dudley told the Financial Times that asset purchases and communication are "two potentially complimentary avenues."