Fed Taper May Occur on Further Good Jobs Data

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.

CNBC

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Stuart McPhee

Stuart McPhee

Senior Currency Technical Analyst at Market Pulse
Stuart McPhee has more than 16 years’ experience as a private trader and he specializes in technical market analysis of major currency pairs. He is the author of several bestselling trading books, most recently the fourth edition of his popular book “Trading in a Nutshell” (John Wiley), and he contributes articles to daily newsletters and blogs. He produces articles and videos on the how-tos of technical trading. Based in Australia, Stuart speaks at conferences and events worldwide.
Stuart McPhee