Why this US jobs report matters – and what to watch

That has set the stage for the Fed to lower interest rates for the first time in four years, which could bring further financial relief, leading to lower borrowing costs for mortgages, car loans, credit cards and other forms of debt.

Friday’s job report will be key to confirming the timing and size of the cut – and if it is actually likely to end up boosting sentiment and helping Democrats, as expected.

For now, most analysts expect a cut of 0.25 percentage points, which would signal an ongoing, orderly slowdown.

If the figures fuel worries about the economy, however, a bigger cut might be in order – though a cut driven by a stuttering economy and Americans losing jobs would hardly prove a benefit to Democrats.

Conversely, booming jobs numbers might make the bank rethink whether the economy is still running too hot and a cut is necessary at all.

That has left the Harris campaign in a peculiar position – hoping for a good jobs report, but not a great one.

In a closely watched speech last month, Federal Reserve chairman Jerome Powell left his options for how big a cut might be on the table.

Friday’s jobs report may start closing some doors.