The Federal Reserve is set to announce its December interest rate decision this week on the 19th, and the market generally believes that there will be a rate cut of 25 basis points in December. However, Nick Timiraos, a reporter for The Wall Street Journal known as the Fed's mouthpiece, stated that how Fed officials view the future path of interest rates may be more important than whether or not to cut rates. (Background: The Fed's November FOMC meeting: the pace of rate cuts may slow or even pause, outlook for neutral interest rates) (Context: Fed officials support continuing to lower rates, and hawkish Fed officials have also indicated that a December rate cut is reasonable). The Federal Reserve (Fed) is expected to announce its interest rate decision this Thursday (18th), with the market broadly predicting a rate cut of 25 basis points in December. According to the CME FedWatch tool, the market expects a 97.1% probability of a 25 basis point cut in December, with only a 2.9% probability of no cut. Furthermore, if the Fed cuts rates by 25 basis points in December as expected, this will mark the third consecutive rate cut this year (September, November, December). However, the FedWatch tool also shows that the market expects only a 16.6% probability of a 25 basis point cut in January next year (to 4.00%-4.25%). Fed Mouthpiece: Rate cuts may pause next year. In this regard, Nick Timiraos, known as the 'Fed mouthpiece,' wrote today that a 25 basis point cut this week is almost a foregone conclusion, but how Fed officials view the future path of interest rates may be more important than whether to cut rates at this FOMC meeting. The article mentions that Jon Faust, who served as an advisor to Jerome Powell from 2018 until early this year, stated: Currently, there are justifiable reasons for either cutting rates or holding steady. The views of Fed officials on the future path of the federal funds rate may be more important than any decisions they make at the December meeting. Additionally, although the Fed indicates that inflation has recently slowed, some Fed officials believe that the policies implemented after President Trump took office may reverse two major factors that the Fed sees as contributing to cooling inflation: 'falling commodity prices' and 'slowing wage increases.' Fed officials are also concerned about the investment frenzy in U.S. stocks and Bitcoin, which could stimulate consumer spending and further fuel inflation. In this regard, Nick Timiraos predicts that rate cuts may pause next year: One option this week is to cut rates by 25 basis points and then use new economic forecasts to strongly signal that the central bank is prepared to cut rates more slowly. Fed officials worry that 'excessive rate cuts' could create risks. On the other hand, Timiraos's article also mentions that there are two factions of officials within the Fed, those who support rate cuts and those who oppose them. Among the opponents, Fed Governor Bowman stated in a speech this month that if the pace of rate cuts is too fast, it could trigger an investment wave, which would reignite already unstable inflation. Furthermore, Fed official Lorie Logan also warned: 'Do not mistakenly believe that the 'normal' interest rate for the economy is far below the current level, leading to excessive rate cuts.' The article goes on to state that the 'pro-rate cut faction,' including Powell, also acknowledges concerns about cutting rates too quickly, but given that the Fed has raised rates to higher levels over the past two years, they believe there is currently no risk of excessive rate cuts. Powell stated last month: 'We are aware of the risks of cutting rates too quickly, as well as the risks of insufficient cuts. At this point, we seem to be in the right position.' Related reports: Why has Bitcoin surged? The Bank of Japan reportedly will not raise rates in December! The yen plummeted to a three-week low. Could Bitcoin crack in two years? The SPAC king warns that 'Google quantum chip' could annihilate SHA-256; Adam Back criticizes it as nonsense. Explosion! Bitcoin rises above $106,600, analysts optimistic: Trump's presidency could surge to $120,000. 'Fed mouthpiece: 97.1% probability of a 25 basis point cut in December! Rate cuts may pause next year.' This article was first published on BlockTempo (the most influential blockchain news media).