Jobs report will help Federal Reserve decide how much to cut interest rates

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 Fed might then seek to deliver a stimulus with a larger-than-usual interest rate cut of a half-percentage point when it meets later this month. If, though, hiring picked up or if the unemployment rate fell, it would suggest that the labor market remain stable, though slowing. The Fed would probably cut its key rate by a more modest quarter-point.