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Rebound in payroll growth would point to September QE3 taper

A rebound in employment growth and an unchanged unemployment rate should reinforce expectations that the Fed will begin tapering its monthly asset purchases in September. Our econometric model of non-farm payroll employment points to a monthly increase of 200,000 in August, more than reversing the dip to 162,000 in July from 188,000 in June.

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