Friday's jobs report virtually cements that the Federal Reserve will approve an interest rate cut when it meets later this month.

Federal Reserve officials appear more likely to cut rates this month after data showed the U.S. labor market remained strong but continued to cool in November, with a deeper debate to come next year over whether to pause further rate reductions.

The U.S. Federal Reserve was locked in a battle with soaring inflation throughout 2022 and 2023, which prompted the central bank to rapidly increase the federal funds rate (overnight interest rates). That triggered a steep climb in interest rates, including the 30-year fixed mortgage rate, which hit a two-decade high of 7.8% toward the end of 2023.