By Ed Carlson | September 24, 2010 at 10:33 AM EDT |
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Renewal of asset purchases unlikely, but it's a close call. We believe that the incoming growth data will be sufficiently positive to prevent the reintroduction of asset purchases in coming months. Indeed, since September 1, our tracking estimate for 3Q GDP has risen from +1.7% to +2.6%. But it's a close call, and the FOMC could act at any time if the data disappoint.