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 conventional wisdom among economists and traders is that the Federal Reserve is going to cut its benchmark interest rate by another quarter of a percentage point on Dec. 18, and then pause at its first meeting in 2025.

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.

The Federal Open Market Committee is most likely to cut interest rates again on December 18 to 4.25% to 4.5%, according to fixed income markets.

For many investors, Friday's jobs report confirmed expectations that the Federal Reserve is on track to cut interest rates

These are today's mortgage and refinance rates. Mortgage rates are down this month, and they should drop further next year as the Fed lowers rates.

Federal Reserve Bank of Cleveland President Beth Hammack said policymakers are “at or near” the point where the central bank should slow the pace of interest-rate reductions, citing a strong economy and still-elevated inflation.

In her first major policy speech, Federal Reserve Bank of Cleveland President Beth Hammack said on Friday she’s keeping her options open when it comes to the central bank’s next policy meeting, as broader economic conditions continue to argue for a slowdown in the pace of rate cuts.

CNBC's Steve Liesman joins 'Squawk on the Street' to break down the November jobs report.