According to Jinshi, some Fed officials were surprised by the rapid decline in inflation in 2023, and they seem to be setting a new standard for rate cuts: a decline in broader price pressures. Last week, Fed officials Barkin and Collins said they not only want inflation to continue to fall, but also want it to expand more meaningfully to housing and other service sectors, as the recent economic slowdown is more driven by commodities. Michael Skordeles, head of U.S. economics at Trust Advisory Services, said Fed officials seem to be setting new benchmarks and changing the rules, and have found enough reasons to be patient.

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