The September jobs report and recent economic data suggest the Fed overreacted with its jumbo rate cut. The U.S. economy continues to hum at a stronger clip than many expect, which raises the question of whether the Fed made the right call going with a jumbo rate cut.

On the other hand, the world is a mess, inflation still lurks, and there’s a contentious election in November. Given all of that, a data-driven Fed is likely to stay the course.

September's 254,000 new jobs topped consensus forecasts by about 100,000. This means the Fed can probably slow the pace of rate cuts, economists said.