According to Reuters, the Fed's policy meeting next week may remove the wording about high inflation. If this is true, it will be the strongest signal yet that the Fed plans to cut interest rates as early as September and start its easing cycle. Adjusting the description of inflation from high to more moderate words may also lead the Fed to modify another key sentence in its current policy statement: the Fed will not cut interest rates until officials are more confident that inflation is moving towards 2%. In late June, 2024 FOMC voting member Bostic indirectly hinted that if the inflation rate falls to 2.5% or below, it can be used as an indicator to consider adjusting the inflation description. Many economists believe that the June PCE data to be released on July 26th will fall to or below this threshold.