Companies cut 32,000 from payrolls as Fed debates trimming main rate: ADP

Group 1 - Traders in interest rate futures have increased the odds of a Fed interest rate cut to 89% from 83.4% for the upcoming meeting [3] - The current federal funds rate is in the range of 3.75% to 4% [3] - Some Fed officials have indicated a need for a third consecutive reduction in borrowing costs due to a dimming employment outlook [3][4] Group 2 - Other central bankers have expressed concerns about inflation remaining above the Fed's 2% target and prefer to keep rates steady to prevent price pressures [4] - The Beige Book report from the 12 Fed district banks noted a slight decline in employment, with half of the districts reporting weaker labor demand [5] - The ADP employment report for November highlighted a payroll cut of 32,000 jobs, with small employers (fewer than 50 workers) shedding 120,000 jobs while larger firms added 90,000 jobs [7] Group 3 - Pay for employees who remained with their employer rose by 4.4%, while those who changed jobs saw a 6.3% increase in pay [7] - The Bureau of Labor Statistics has delayed the publication of the November job report to December 16, which is after the policymakers' meeting [6]