Just out from Jan Hatzius:
"While the August employment report was a moderate disappointment, we believe it is probably not weak enough to prevent the FOMC from tapering in September. However, it does raise the likelihood of a "dovish taper," which could include a small size of the overall adjustment to purchases, and which we think would likely coincide with an enhancement of the forward guidance. The continued decline in the participation rate further highlights the justification for maintaining the fed funds rate at an exceptionally low level even after unemployment reaches 6.5%."