Futures markets are also expecting a rate cut. Investors peg the chances of a quarter-point interest rate cut at nearly 96%, according to the CME FedWatch Tool, a measure of market sentiment.

Fed-funds futures traders were shifting toward a greater likelihood of a 50-basis-point rate cut from the Federal Reserve by October, following Treasury Secretary Scott Bessent's calls for easing. The chance of such a reduction rose to 70.

JPMorgan has made a sharp turn in its Fed forecast, now expecting multiple interest rate cuts starting as soon as September 2025. The bank’s economists see as many as four quarter-point cuts rolling out over the coming months,