Analysts and strategists expect the Federal Reserve to slash rates further amid sustained debate over the effect of last week's cut on the terms at which the central bank lends to financial institutions.

John Praveen, chief investment strategist of Prudential International Investment Advisers, Deutsche Bank analyst Mike Mayo and Punk Ziegel analyst Richard X. Bove all said they expect the Federal Reserve to follow its discount rate cut last Friday with a chop to the federal funds rate.