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Wall Street Bumps Up Fed Taper Forecast: CNBC Survey

The strong June jobs report was a game-changer: Wall Street now expects the Federal Reserve to start tapering at least a month earlier than it previously believed, a CNBC survey showed.

The CNBC Fed Survey, taken right after Friday's jobs report, showed that the average forecast of the economists, money managers and investment strategists polled has the Fed starting to reduce its bond purchases in November, one month earlier than the average forecast prior to the report.

The previous CNBC survey, taken a little over two weeks ago, showed the average forecast was December.

In addition, in the new survey just over three-fifths of the respondents expect tapering will start before November and 39 percent, the largest response for any single month, are targeting September.

On average, Wall Street expects a $22.1-billion reduction in the Fed's asset purchases when tapering does begin. They've been running around $85 billion a month, part of the central bank's quantitative easing program to help boost the U.S. economy.

The new CNBC survey shows that Wall Street doesn't think the Fed will completely stop its buying until July 2014.

The first increase in the fed funds rate, the rates banks charge each other, isn't expected until the middle of 2015. The Fed has kept short-term rates close to zero since December 2008.