Analysts: Fed officials appear to be setting a new standard for rate cuts

Some Fed officials were surprised by the rapid decline in inflation in 2023, and they seem to be setting a new standard for interest rate cuts: a broader pullback in price pressures. Last week, both Fed's Barkin and Collins said they not only want inflation to continue to fall, but they also want a more meaningful expansion into housing and other services, as the recent slowdown has been more commodity-driven. Michael Skordeles, head of U.S. economics at Trust Advisory Services, said they appeared to be setting new benchmarks, changing the rules, and Fed officials had found plenty of reason to be patient.