Jerome Powell indicated that if the economy continues as expected, there could be two more rate cuts totaling 50 bps by year-end, but markets anticipate a 75 bps cut. This week's employment data, including JOLTS and ADP figures, will be crucial in shaping the Fed's rate cut trajectory and market expectations. Strong employment figures may lead to a reassessment of rate cut expectations, potentially strengthening US rates and the dollar, which could pose challenges for equity markets.