September's 245,000 new jobs topped consensus forecasts by about 100,000. This means the Fed can probably slow the pace of rate cuts, economists said.

A surge in U.S. job growth has financial markets betting the Federal Reserve will follow last month's half-point interest rate reduction with smaller moves, and ignited a debate over whether the policy rate ends up at a higher level than previously expected.

Key Takeaways Market participants reassessed the outlook for interest rates on Friday after a surprisingly strong jobs report bolstered the case for slow-and-steady rate cuts from the Federal Reserve.