Federal Reserve Considers Policy Statement Revisions Amid Economic Activity

According to BlockBeats, the Federal Reserve is contemplating several revisions to its policy statement. The central bank may adjust its language to acknowledge a rebound in economic activity and potentially remove references to rising inflation, while maintaining other statements on inflation and employment. Additionally, the Fed might mention the uncertainty caused by a lack of data due to the government shutdown. The Federal Reserve is also expected to modify its target range to reflect a decision to cut interest rates. The most significant changes in wording are anticipated in the section on quantitative tightening (QT), as the Fed is likely to signal an end to QT either in this meeting or the next. There is a possibility that Federal Reserve Governor Milan may oppose a 25 basis point rate cut, advocating instead for a 50 basis point reduction. Conversely, Kansas City Fed President Schmidt, known for his hawkish stance, might oppose any rate cut, favoring the maintenance of current rates. These potential changes are largely anticipated by the market and are not expected to cause surprise.