Odaily Daily Planet News According to the team of Citi economists led by Andrew Hollenhorst, a loose labor market will alleviate inflationary pressures in the service industry, and a weak global situation will curb commodity prices. This will lead to the Fed taking aggressive action, with a cut of 25 basis points at each meeting before July next year, bringing the federal funds interest rate down to between 3% and 3.25%. This is far below market expectations, which forecast that the federal funds interest rate will reach by then.