The Federal Reserve is preparing to revise its policy statement, reflecting a possible shift in economic activity and the current inflation landscape. Sources indicate that the central bank might adjust language to acknowledge an uptick in economic growth and potentially remove references to accelerating inflation. However, statements regarding inflation and employment are expected to remain largely unchanged. Additionally, the Fed may address the impact of the government shutdown on data availability, acknowledging uncertainties this poses. The Federal Reserve is also poised to modify its target rate range as they are anticipated to lower interest rates following their policy meeting. Changes in the quantitative tightening (QT) section are particularly noteworthy, with the Fed likely signaling an end to QT either at this meeting or the next. There’s a possibility that Federal Reserve Governor Milan might oppose a 25 basis point cut, advocating instead for a 50 basis point reduction, while Kansas City Fed President Schmidt, known for his hawkish stance, may advocate against any rate cuts, maintaining the current policy status quo. These changes are widely anticipated by market participants and are not expected to be surprising.