Market expectations for a U.S. Federal Reserve interest rate cut in September have surged sharply, with prediction markets and financial institutions indicating a high probability of a 25 basis point reduction. As of early August 2025, odds for a September rate cut have risen to approximately 90-95%, according to sources including Polymarket, Kalshi, and other prediction platforms. Goldman Sachs forecasts the Federal Open Market Committee (FOMC) will initiate a series of three consecutive 25 basis point cuts starting in September, while also noting the possibility of a 50 basis point move if the unemployment rate increases significantly. JPMorgan Chase & Co. has revised its outlook, bringing forward its forecast from December to September for the first rate cut, anticipating three 25 basis point reductions throughout 2025. This revision is attributed to signs of labor market weakness and uncertainty surrounding President Donald Trump's recent Fed nomination, Stephen Miran. The market has largely priced in this dovish pivot, which is seen as potentially bullish for risk assets including cryptocurrencies such as Bitcoin. Additionally, the Canadian swap market shows a rising 38% chance of a Bank of Canada rate cut in September, up from 33% prior to recent jobs data. Overall, the consensus among major financial institutions and market indicators points toward an easing cycle beginning as soon as the September FOMC meeting.