If you do not have to leave the CAT as Doc stated for visual inspection; you can order a Flowmaster muffler from Advance with 2 1/4 in/out for a little over 80 bucks. Remove the CAT and the
reducer in front of it and replace it all with 2 1/4 inch straight pipe into muffler.
The reducer and the CAT are the restrictions in the exhaust system along with the muffler...
Some on this forum have reported some MPG increase after performing the above modifications... Power increase, judge for yourself...
Lowering exhaust back pressure on the turbo WILL decrease EGT's out of the engine; I know this for a fact from the modes I did on my Dodge Cummins with EGT and boost gauges. (5 inch turbo back exhaust)
A Diesel engine is a big old air pump, the more air you can get in and out with the least restriction the more power it will produce. Valve size and head flow dynamics are the main limiting factors if you diminish all others.

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Supporting Vendor and Moderator of LOST05 Jeep Liberty CRD Limited 
Ironman Springs/Bilstein/Shocks
Yeti StgIV Hot Tune
Week's BatteryTray
No FCV/EGR
Samcos/ProVent
SunCoast/Transgo
Carter Intank-pmp
2mic.Sec.Fuel Filter
Flowmaster/NO CAT
V6Airbox/noVH
GM11 Bld.fan/HDClutch
IronrockArms/wwdieselMount98 Dodge Cummins 24 Valve