Analysts at Citi Research expect the Fed to begin aggressively cutting interest rates within a few months and continue through next summer. In a note on Friday, the bank cited new signs of an economic slowdown and said the Fed would cut rates by 25 basis points at each meeting starting in September, for a total of eight cuts through July 2025. This would reduce the base rate by 200 basis points, from 5.25% -5.5% now to 3.25% -3.5% and remain unchanged for the rest of 2025.