"Market Volatility Hangs on Jobs Report and Fed Rate Decisions"

The Federal Reserve is closely monitoring the strength of the labor market to determine how much further they need to raise interest rates this year. The upcoming employment report will provide insight into the momentum of the American economy. Despite slower growth, the housing market has stabilized and the job market remains strong. Fed officials are concerned that rapid wage growth could hinder efforts to bring inflation back to their 2 percent target. While they expect to continue raising rates, they have moderated the pace compared to last year and skipped a rate move in June. The labor market's strength will shape the outlook for future rate increases.