Golden Finance reported that a team of Citi economists led by Andrew Hollenhorst said that a loose labor market will reduce inflationary pressure in the service industry, and weak global conditions will suppress commodity prices. That would lead to aggressive action by the Fed, which is expected to cut interest rates by 25 basis points at each meeting until next July, taking the federal funds rate to a range of 3% to 3.25%. That was well below market expectations, which expected the federal funds rate to be around 4% by then.