President Donald Trump stated that he has heard Federal Reserve Chair Jerome Powell will cut interest rates in September 2025. Following this, market sentiment has shifted significantly, with traders and analysts increasingly pricing in a rate cut. The probability of a Federal Reserve rate reduction in September has risen sharply, reaching as high as 89.1% according to various market sources. This marks a notable increase from earlier estimates, which were around 39% prior to the July jobs data release. The July employment report indicated a slowdown in job growth, contributing to expectations that the Fed is nearing a policy pivot. Market participants are adjusting to these developments amid changing supply and demand dynamics and broader macroeconomic uncertainty.