Brokerages including Morgan Stanley are reiterating their expectation of a 25-basis-point interest rate cut by the U.S. Federal Reserve in December, following the nonfarm payrolls data. Data showed nonfarm payrolls increased by 227,

Friday’s jobs data showing an uptick in the unemployment rate has caused traders to ramp up bets that the Federal Reserve will cut interest rates later this month. Federal-funds futures recently showed a roughly 87% chance that the Fed will announce a rate cut on Dec.

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

The US Federal Reserve appears likely to lower benchmark interest rates again later this month, after cutting interest rates at its previous two meetings. CLick to read.

November’s payrolls report keeps open the door for a quarter point rate cut this month, though next week’s CPI data still needs to be cleared.

In short, the Fed is seeing the best of both worlds: an economy growing steadily with inflation headed toward its target, albeit maybe a little slower than had been anticipated. The Fed confirmed this Wednesday when it released its “beige book” survey of the U.S. economy, noting growth in the economy continued although hiring was subdued.

Wall Street's main indexes opened higher on Friday as traders increased bets on a Federal Reserve rate cut this month after the November payrolls report. The Dow Jones Industrial Average rose 58.6 points,

After October’s noisy jobs report, November’s reading got a boost from strike resolutions and hurricane recoveries.

The November jobs report revealed a rebound in payrolls. However, a rise in the unemployment rate and other data support future Fed interest rate cuts.

The report signals a recovery in the jobs market after a bleak October, but not one that outpaces growth in the months prior. The number of jobs added to the economy beat economists’ expected count of 207,