Former 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 increasingly pricing in a rate cut. The probability of a Federal Reserve rate reduction in September has risen sharply from 39% before the July jobs report to around 80-89% in early August. This shift reflects growing expectations of a policy pivot amid signs of slowing job growth and changing bond market dynamics. The market's anticipation of a rate cut has been noted by several sources, indicating a strong consensus among traders on the likelihood of the Federal Reserve easing monetary policy in the coming month.