###POV: WATCH THE LANGUAGE: Even with the.......>

FED: ###POV: WATCH THE LANGUAGE: Even with the expected 25bps cut today, there

is room for the FOMC to surprise with its accompanying statement.

- Broad expectation is for some marked-to-market changes to current conditions

description, with door left open to further cuts (maintaining 'closely monitor'

and 'act as appropriate' phrasing). But here are a few possible twists:

- Hawkish 1) Explicitly says rate cut `preemptive` or `insurance` or `risk

management`. Could suggest one-and-done cut, return to data-dependency.

- Hawkish 2) Reverts to `patient` language. More likely in event of 50bps cut.

- Hawkish 3) `Closely monitor` changed to `continue to monitor` (per Morgan

Stanley); again, more likely in case of 50bps / one-and-done.

- Dovish 1) Adds that balance of risks to outlook is weighted to the downside.

- Dovish 2) 'Adjustments'->'Accommodation' in last para ('In determining the

timing and size of future ACCOMMODATION to the target range') = more cuts ahead.

- Neutral 1) Adds statement similar to 1998's insurance cut explaining cut taken

to cushion effects on U.S. growth from global factors (per NatWest Markets).