The layoffs will be focused on corporate jobs, not frontline pharmacy, retail, or distribution workers, but more dramatic changes could be coming soon.

A highly anticipated report on the job market Friday could show unemployment rising, potentially influencing how fast and how far the Federal Reserve will cut borrowing costs in the coming months.

By Howard Schneider NASHVILLE, Tennessee (Reuters) -Federal Reserve Chair Jerome Powell indicated on Monday the U.S. central bank would likely stick with quarter-percentage-point interest rate cuts moving forward and was not "in a hurry" after new data boosted confidence in ongoing economic growth and consumer spending.

Federal Reserve Chair Jerome Powell says the economy is in solid shape. “We intend to use our tools to keep it there,” he adds.

Key Takeaways The unemployment rate in September likely stayed at 4.2%, forecasters expect an economic report to say Friday.Some forecasters expect the unemployment rate to tick up to 4.3%, potentially putting more pressure on the Federal Reserve to cut interest rates and boost the economy.

Federal Reserve Chair Jerome Powell said Monday that the recent half percentage point interest rate cut shouldn’t be interpreted as a sign that future moves will be as aggressive, in fact indicating the next moves will be smaller.

Jerome H. Powell, chair of the Federal Reserve, said that inflation is down and unemployment up “significantly,” and that rates will move down “over time.”

On Monday, the Fed chair will speak at the National Association for Business Economics conference to discuss the US economic outlook. At the end of the week, the September jobs report is expected to show a healthy,