The Federal Reserve building in Washington, DC. Photo by Chip Somodevilla/Getty Images.

The September jobs report was stronger than expected and is likely to assuage recession risks and fears, driving up hopes for soft landing or no landing economic scenarios. This report is likely to reduce the chances that the Federal Reserve will cut interest rates by 0.5% on November 7, but the recent trend of slowing payrolls is still supportive of a 0.25% rate cut. An uncertain presidential election outcome could still push the Fed to cut rates by 0.5%.

The Employment Situation report, known to economists and analysts as the jobs report, was strong for September. It showed a drop in the unemployment rate to 4.1%, strong net payroll gains of 254,000, and strong upward revisions to payrolls by 72,000 for the previous two months. This was a much stronger report than forecasts by economists and analysts, and it reduces the perceived downside risks to the U.S. labor market........

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