Traders are markedly increasing wagers that the Federal Reserve will begin easing policy as soon as next month after a sharply weaker July jobs report. Fed-funds futures now price in three quarter-percentage-point cuts by the end of the year and assign an 89% probability to a 25-basis-point reduction at the 17-18 September meeting. A minority of investors are even positioning for a half-point move, sending two-year Treasury yields to their lowest level in six weeks. The shift in rate expectations reverberated through currency markets. The dollar index slid 0.33% to 98.41 while the euro rose to $1.1636, its highest in one week. The greenback has given back the gains notched earlier in President Donald Trump’s second term as investors bet on looser U.S. monetary policy. Federal Reserve Governor Lisa Cook said the latest employment figures were “concerning” and warned that equity valuations look “quite elevated”. Her remarks were interpreted as leaving the door open to policy accommodation amid signs of slowing growth and still-contained inflation. An accelerated easing cycle would dovetail with President Trump’s repeated calls for lower borrowing costs to counter a cooling economy and bolster markets ahead of the 2026 mid-term elections.