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The robust growth "certainly raises the possibility of the Fed pulling back in December," said Peter Cardillo, chief market economist at Rockwell Global Capital. "The Fed is going to test the water." The Fed is buying $85 billion of bonds every month to hold down interest rates and encourage hiring and borrowing. The program has also helped drive the stock market rally by lowering bond yields, making them less appealing to investors. Another key economic report comes out on Friday, the government's jobs survey for October. Economists forecast that U.S. employers added 122,000 jobs, down from 148,000 the month before, reflecting a 16-day partial shutdown of the federal government. The jobs report "has people a little on edge" said Erik Davidson, deputy chief investment officer of Wells Fargo Private Bank. "We're expecting a modest number but it's really hard to say what the impact of the government shutdown will be." In government bond trading, the yield on the 10-year Treasury note fell to 2.60 percent from 2.64 percent.
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