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Preview of Federal Reserve Decision: Policy Statement Likely to Undergo Partial Revisions
Summary: According to sources, the Federal Reserve may make several revisions to its policy statement. The Fed may change its wording to acknowledge economic activity rebounding, possibly removing references to rising inflation while keeping other statements on inflation and employment unchanged. They may mention the lack of data due to the government shutdown causing uncertainty. The ...
According to sources, the Federal Reserve may make several revisions to its policy statement. The Fed may change its wording to acknowledge economic activity rebounding, possibly removing references to rising inflation while keeping other statements on inflation and employment unchanged. They may mention the lack of data due to the government shutdown causing uncertainty. The Fed may adjust the target range to reflect rate cuts, with the wording on Quantitative Tightening (QT) seeing the most change, as the Fed is expected to signal the end of quantitative tightening at this meeting or the next. There may be dissenting views from Fed Governor Milan, who may oppose a 25 basis point cut and vote for a 50 basis point cut, as well as Kansas Fed President Schmid, who may oppose a rate cut and support keeping rates unchanged as one of the most hawkish voters. These potential changes are largely in line with market expectations and should not come as a surprise.
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Link: Preview of Federal Reserve Decision: Policy Statement Likely to Undergo Partial Revisions [Copy]
