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U.S. Adds 195,000 Jobs – Unemployment Remains 7.6% –

A strong report increases the likelihood the central bank will start pulling back on its bond purchases as early as September, a prospect that has made some investors more cautious in recent weeks. On the other hand, signs of weakness in the labor market would likely prolong the Fed’s program of purchasing $85 billion in bonds per month.

Along with job creation, the Fed is closely watching unemployment levels. The unemployment rate, which is based on a separate survey from the one that tracks jobs, remained at 7.6 percent, unchanged from May.

The chairman of the Federal Reserve, Ben S. Bernanke, said two weeks ago he anticipated the bond-buying program would wrap up when the unemployment rate sinks to 7 percent. The Fed estimates that could happen by the middle of next year. via  – NYTimes.com06jobs-span1-articleLarge.

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