For US Fed, ‘material reassessment’ may be in eye of beholder

Both “material reassessment” and the need for “persistent” higher inflation were introduced as rate change benchmarks through a less formal channel. Rather than appearing in the Fed’s official statement after each policy meeting, they came from Powell(pic) himself in press conferences in October and December.

WASHINGTON: At a glance, the Federal Reserve has set a high bar for any change in interest rates this year: A “material reassessment” of the economic outlook would be required as set forth by US central bank chief Jerome Powell.

Since introducing that idea in October as he called a halt to last year’s mini-rate cut cycle, Powell himself has uttered the term at least half a dozen times, and the phrase has peppered remarks from other policymakers as well.