The Federal Reserve is expected to cut interest rates in September after a slow jobs report. Market participants are now certain the Fed will cut rates by at least 25 basis points, with a 14% chance of a 50-point cut. Inflation and job market concerns are driving the decision.

Fed officials have been grappling with a dual mandate of maintaining low inflation and high employment. Inflation is above the 2% goal, while the job market is showing signs of weakness. The decision to cut rates will likely be driven by concerns over job market conditions rather than inflation.

The Fed faces a dilemma between raising rates to fight inflation or lowering them to encourage job growth. Previous concerns about inflation have kept rates steady, but the recent jobs report has shifted the balance. The bad employment data gives the Fed reason to lower rates in the coming weeks.

Read more at Yahoo Finance: Jobs Report Seals Federal Reserve Interest Rate Cut