Odaily Daily News According to a team of Citigroup economists led by Andrew Hollenhorst, a loose labor market will alleviate inflationary pressures in the service sector, while weak global conditions will restrain commodity prices. This will lead to the Federal Reserve taking aggressive action, with interest rate cuts of 25 basis points at every meeting before July next year, bringing the federal funds interest rate between 3% and 3.25%. This is much lower than market expectations, which anticipate the federal funds interest rate to reach 3% to 3.25% by that time.