Central Banks
Fed Officials Eye ‘Broadening’ Disinflation as New Rate-Cut Test
- Barkin, Collins want further inflation progress in services
- Tuesday’s CPI figures will offer update on inflation progress
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Some Federal Reserve officials, who were surprised by inflation’s rapid descent in 2023, seem to be setting a new bar for interest-rate cuts: a broader pullback in price pressures.
Last week, both Richmond Fed President Thomas Barkin and Boston Fed President Susan Collins indicated they not only want the decline in inflation to continue — like many other officials have said — but also to broaden more meaningfully to housing and other services, given the recent slowing was driven more by goods.