Analyst: Regardless of the non-farm and PCE data, the Federal Reserve may cut interest rates by 25 basis points in November

Wilmington Trust's bond portfolio manager, Wil Stith, stated that if the inflation data released on Thursday is stronger than expected and Friday's non-farm data is hotter than anticipated, "I think they can discuss pausing rate cuts because they have already cut 50 basis points." Jeffrey Roach, chief economist at LPL Financial also believes strong job growth could persuade the Federal Reserve to pause rate cuts in November.

However, other observers of the Fed suggest that the data set to be released on Thursday and Friday are unlikely to alter the Fed's path of interest rate cuts. Jamie Cox, managing partner at Harris Financial Group said: "Regardless of what the data says, The Fed has already embarked on a path for a 25 basis point cut in November and it’s unlikely this central bank will change its trajectory."

Ellen Zentner, Chief Economic Strategist at Morgan Stanley Wealth Management said there was “no reason to believe that the Federal Reserve won't cut another 25 basis points in November,” unless there were significant surprises in employment reports. Currently many traders agree with this assessment. As of last Friday investors predicted over a 90% chance that The Federal Reserve would make a 25-basis-point cut during their meeting in November.