Odaily Planet Daily News According to a team of economists led by Andrew Hollenhorst, loose labor markets will alleviate inflationary pressures in the service sector, while global weakness will suppress commodity prices. This will lead to the Federal Reserve taking aggressive action, with interest rates expected to be cut by 25 basis points at each meeting before July next year, bringing the federal funds rate to between 3% and 3.25%. This is well below market expectations, which anticipate the federal funds rate to reach by then.