By Chuck Mikolajczak NEW YORK (Reuters) – U.S. stocks surged to close out the trading week on Friday after a report said the U.S. Federal Reserve will likely debate on a smaller interest rate hike in December, raising hopes the central bank may be poised to adopt a less aggressive policy stance. Some Fed officials have begun sounding out their desire to slow down the pace of increases soon, according to a Wall Street Journal report, and how to signal plans to approve a smaller increase in December. San Francisco Federal Reserve President Mary Daly echoed that sentiment and said it’s time to st…