Federal Reserve Chairman Jerome Powell signaled that the centralbank would pull out the stops to combat a global disinflationarydowndraft, foreshadowing a potential shift toward an easiermonetary policy over time.

Speaking to reporters on Wednesday, after the Fed left itsbenchmark interest rate unchanged, Powell said he is intent onevading the downward spiral in inflation and inflation expectationsthat's bedeviled other countries.

"We have seen this dynamic play out in other economies aroundthe world, and we are determined to avoid it here in the U.S.," hesaid. The strong words—combined with a minor yet telling tweak inthe Fed's post-meeting statement—suggested that the central bank ismoving toward a major change in how it interprets itsprice-stability mandate as it completes a review of its policyframework by midyear.