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Fed tapering postponed… U.S. employment data fell far short of expectations

The number of nonfarm payroll jobs in the U.S. increased by 235,000 in August. This is significantly lower than the market estimate (720,000), and there are observations that the start of the Federal Reserve’s tapering (reduction in asset purchases) may be lowered.

The U.S. Department of Labor reported that the number of nonfarm payroll jobs increased by 235,000 in August.

The market predicted that the timing of the announcement of the start of tapering will be decided according to the employment performance in August. “It’s unclear how much the impact of the delta virus is being taken into account, but the risk is very low,” said Lee Perridge, macro head of State Street Global Markets. It will be postponed to a month.”

However, with the employment recovery falling below expectations, the Fed’s start of tapering may be delayed beyond the end of the year.

CNBC said the Fed’s tapering could be pushed back to 2022 as employment data came out worse than expected, but the specific timing would depend on whether the delta-mutant virus spreads.

Earlier, Fed Chairman Jerome Powell said last month that he would come to a conclusion taking into account the economic impact of the delta mutation when hinting at a tapering this year.

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