You may be assigned 1 grade below, or two grades abover your currect grade.
No one likes being assigned to a position below their current grade but unfortunately sometimes it is necessary. The regulation allows you to be assigned one grade down and up to two grades up, so the action is within regulatory guidelines.
Will it hurt you for promotion? The key is not the position you are in but how you perform in the job. The comments on your NCOER that reflect your performance and potential are important, and will be what the board focuses on.
