Investing.com -- Atlanta Federal Reserve President Raphael Bostic hints at potential 50 basis point rate cut in November if labor market weakens unexpectedly. Recent data on inflation progress prompts Fed to focus on labor market to avoid economic downturn. Bostic targets terminal rate of 3.00% to 3.25% by year-end, in line with economists' expectations. Debate on speed of reaching benchmark rate, with some predicting achievement by next summer.
Ahead of August nonfarm payrolls report, economists predict 4.2% unemployment rate. July report triggered recession fears and global selloff, but subsequent data showed economic strength. Fed projects unemployment to rise to 4.4% by year-end. Odds favor 25 basis point rate cut in November after 50 basis point cut in September.
Analysis: Federal Reserve's potential rate cuts based on labor market performance could impact economy and financial markets. Investors should monitor upcoming reports for potential market shifts and adjust their investment strategies accordingly to mitigate risks and capitalize on opportunities.