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The Federal Reserve is set to begin unwinding its tightening campaign this month as inflation cools and the labor market slows. The big question policymakers now face is whether a small interest-rate cut will be enough to keep the economy in expansion mode.

The latest snapshot of the US labor market left open the possibility the Federal Reserve will go big as it begins cutting interest rates, though two key officials on Friday stopped short of endorsing such a move at their meeting this month.

Here are the key takeaways from the US employment report for August released Friday:

Top aides to President Joe Biden have been crafting a proposal to create a sovereign wealth fund that would allow the US to invest in national security interests including technology, energy, and critical links in the supply chain, according to people familiar with the effort.

Taiwan Semiconductor Manufacturing Co. achieved production yields at its Arizona facility on par with established plants back home, an early indicator that its marquee US project is on track to achieve its targets.

Japan's Toyota Motor has slashed its electric vehicle production plans for 2026 by a third, the Nikkei business daily reported, becoming the latest automaker to roll back electric car plans as EV sales momentum wanes.

China should explain widening discrepancies in its balance of payments data that are obscuring growing global imbalances, a top US economist said.

Gold fell after a mixed jobs report added to the ongoing debate over how deep the Federal Reserve is going to cut interest rates at its September meeting.

Federal Reserve Governor Christopher Waller said it’s important for the US central bank to begin cutting interest rates this month amid rising risks of further weakening in the labor market.

US hiring fell short of forecasts in August after downward revisions to the prior two months, a development likely to fuel ongoing debate over how much the Federal Reserve should cut interest rates.

Former Treasury Secretary Lawrence Summers said that while the August employment report wasn’t particularly poor, it did make predicting the size of the Federal Reserve’s likely interest-rate cut this month a tougher call.

For those on Wall Street clinging to the bull case on the economy, life is getting harder.

Stocks saw their worst week since March 2023 and bonds whipsawed as another disappointing US jobs report revived concerns the economy is cooling and the Federal Reserve is moving too slow to rescue it.

Euro-area momentum slowed in the second quarter, the latest piece of bad economic news for the European Central Bank.

Forecasters anticipate a monthly report on US employment will show a bounce in hiring and a tick lower in the unemployment rate in August, marking a stabilization after the July data sparked a growth scare in financial markets.

Oil was poised for a deep weekly loss on persistent concerns about soft demand and ample supply, with OPEC+ delaying a planned increase in production amid the dour outlook.

Europe is stalling for time in the electric-car race as the region’s automakers struggle with the transition and politicians become wary of fueling voter frustrations.

The European Central Bank won’t react to a weakening euro-zone economy by lowering interest rates more rapidly, according to a survey of analysts.

Stagnation statt Wachstum: Das ifo-Institut hat seine Konjunkturprognose gesenkt, auch andere Institute rechnen für 2024 nicht mehr mit einem Wachstum. Wie schlecht geht es der Wirtschaft wirklich? Von L. Hiltscher.

Asian stocks regained some ground after a global selloff as traders awaited this week’s US payrolls data to gauge the extent of the Federal Reserve’s easing.

The bold bet from the likes of Citigroup Inc. and JPMorgan Chase & Co. that the Federal Reserve will slash interest rates by a half-percentage-point this month faces its biggest test yet from Friday’s US jobs report.

Donald Trump pledged to cut the corporate tax rate, slash regulations and audit the federal government, embracing an idea proposed by billionaire backer Elon Musk, as he pitched his agenda to Wall Street and corporate leaders in New York.

US interest rates will settle in a range of between 3% and 4% after reductions by the Federal Reserve, according to Oaktree Capital Management LP’s Howard Marks.

Oil fluctuated between gains and losses after risk-off sentiment in broader markets vied with an OPEC+ agreement to pause its planned crude production increase for two months.

Rate options traders stepped up wagers that the Federal Reserve will kick off its easing cycle with a half-percentage-point cut this month, reflecting the increasing speculation that policymakers will act aggressively to keep the economy from sputtering.

A vast majority of global banks now expect China’s economy to grow less than 5% this year, with Bank of America Corp. the latest to slash its forecast, joining the likes of Goldman Sachs Group Inc. and JPMorgan Chase & Co.

JPMorgan Chase & Co. abandoned its buy recommendation for Chinese stocks, citing heightened volatility around the upcoming US elections in addition to growth headwinds and tepid policy support.