Investors are preparing for Friday's jobs report, which comes ahead of next week's Federal Open Market Committee Meeting (FOMC). The rate-cutting cycle has also started, led by the Bank of Canada and the European Central Bank. Former Kansas City Federal Reserve president Esther George joins Market Domination Overtime to discuss monetary policy and key economic indicators.

George highlights that the jobs report will be "very important" to the FOMC because its dual mandate concerns both inflation and unemployment. Inflation is still the Fed's key indicator because inflation has remained above the central bank's target, the former Kansas City Fed president adds. On the ECB decision, George notes that the rate cut reflects the fact that inflation was "really a global phenomenon" with distinct regional dynamics. In Europe, she says, the ECB was attentive to inflation dynamics pertaining to energy costs.

The "good news" for the economy, George states, is that consumer spending and the job market are seeing "welcome moderation." She notes that she will continue to monitor consumer confidence moving forward.

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This article was written by Gabriel Roy