Fed's quantitative tightening policy remains crucial, with a need to address excessive liquidity in the financial system to maintain investor trust. Read more here.

In 2022, when the Fed realized that it had been late in addressing the inflation surge, it raised interest rates in twenty-five, fifty, or even seventy-five-basis-point increments to regain inflation control.

Economists have estimated that the government will report Friday that employers added 160,000 jobs in August and that the unemployment rate slipped back to 4.2%. Since hitting a half-century low of 3.4% in April of last year, the jobless rate has risen nearly a full percentage point.

The Federal Reserve is poised to cut interest rates for the first time in over four years, according to August's recent job market data.

Friday's monthly jobs report will likely mark a pivotal moment for the economy and the Federal Reserve. If it shows that hiring was weak in August and that the unemployment rate rose — similar to the unexpectedly soft figures for July — it would heighten worries that the job market is stumbling.

The job market may have cooled but appears sturdy as the Federal Reserve is expected to cut interest rates Sept. 17-18.