According to Jinshi, the Federal Reserve lowered its expectations for interest rate cuts this year after first-quarter inflation data was worse than expected, which is good news for Fed officials seeking to start cutting interest rates in the coming months. The Fed closely monitors inflation in the service sector other than housing and energy, which tend to be more sticky. Data from the Bureau of Economic Analysis showed that this indicator increased by 0.1% in May from the previous month, the smallest increase since October last year. Although borrowing costs have taken a toll on some sectors of the economy, household demand has remained resilient. Spending on the service sector, adjusted for inflation, rose 0.1%, driven by air tickets and health care. Spending on goods rose 0.6%, driven by computer software and automobiles.