With the rate now down to a five year low of 6.6% from 7.9% just 12 months ago the US Fed and its new chairperson Janet Yellen will have to readdress its previous forward guidance, in much the same the way that the BOE and Mark Carney are having to on the other side of the pond.

Yellen was a later convert to linking interest rate rises to inflation and unemployment and its creator at the Fed, Charles Evans, this week warned that the forward guidance will need a re-write

You start writing the statement without reference to 6.5%, but you find a way to mention that it will still be ‘well past the time,’ some language that captures that, and also the important guidance that as long as inflation is below our 2% objective, we can continue to have very accommodative monetary policy

Reuters provides a good piece of week-end reading here