Employment gains mean that QE3 tapering still on track

Even as estimates for second-quarter GDP growth have been revised lower in response to the disappointing incoming news on activity, the continued resilience of monthly employment gains has persuaded investors that the Fed is still on track to begin reducing its monthly asset purchases at the September FOMC meeting. Private payroll employment increased at an average of roughly 200,000 per month over the first half of this year, well above the pace seen in mid-2012.