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 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.

Federal Reserve Bank of St. Louis President Alberto Musalem said it may be time for policymakers to slow the pace of interest-rate cuts amid higher than desired inflation and declining concerns over the labor market.

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

The Federal Reserve will almost certainly slash interest rates at its December meeting. Friday’s jobs report sealed the deal, offering the Fed enough breathing room to act without looking reckless. Nonfarm payrolls rose by 227,

Markets widely anticipate the Federal Reserve to cut US interest rates later this month, with officials' concerns on inflation expected to affect the pace of reducing policy next year. Recent rate-cut optimism stems from Friday's US unemployment report,

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