Wall Street is braced for the Federal Reserve to start tapering back its bond-buying program in September, if job growth in August is anything like it was in July.
That’s the current conventional thinking about the Fed’s unconventional quantitative easing program, which has helped balloon its balance sheet to $3.65 trillion.
In the market’s view, the August employment report, released at 8:30 a.m. ET Friday, has become the key data point for the Fed, since employment is an important metric for its easy money policies. Economists expect 180,000 nonfarm payrolls were created in August, the average rate of monthly job growth during the recovery, according to Thomson Reuters data. They also forecast no change in the 7.4 percent unemployment rate. Job growth in July was 162,000.
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