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"Fed's Mouthpiece" Speaks Before Meeting: After December Rate Cut,

Officials May Prepare to Slow Down or Even Stop Rate Cuts

On December 16, Nick Timiraos, a renowned journalist for the Wall Street Journal known as the "Fed's Mouthpiece," wrote in his latest article that the Fed's rate cut plans are constantly changing, and investors generally expect the third consecutive rate cut this week. After this, officials may prepare to slow down or even stop rate cuts.

Nick Timiraos stated that Powell is trying to find the right positioning amid signs that the labor market is less volatile and inflation is slightly more stable than in September. Some officials have expressed doubts about continuing rate cuts, and those who previously strongly supported the last two rate cuts are no longer so certain.

One option this week is to cut rates by 25 basis points and then use new economic forecasts to strongly hint that the central bank is prepared to slow down rate cuts.