Fed statement may remove language on "high" inflation

On July 22nd, according to Reuters, the Federal Reserve's policy meeting next week may remove the language of high inflation. If so, it would be the strongest signal yet that the Federal Reserve plans to cut interest rates as early as September and start its easing cycle. Changing the description of inflation from high to more dovish words could also lead the Federal Reserve to modify another key sentence in its current policy statement: the Fed will not cut interest rates until officials are more confident that inflation will continue to move towards 2%.
Mr. Bostic, the 2024 FOMC vote-maker, implicitly hinted at the end of June that a 2.5 per cent or lower inflation rate could be used as an indicator to consider adjusting the inflation narrative, a threshold that many economists believe the June PCE data, due on July 26, will fall below or below.