The likelihood of a Federal Reserve rate cut in September is now seen near 100% after new data showed U.S. inflation increased at a moderate pace in July and Treasury Secretary Scott Bessent said he thought an aggressive half-point cut was possible given recent weak employment numbers.

President Donald Trump on Tuesday morning made his latest call for the Federal Reserve to lower interest rates following July’s inflation report. But the president didn’t say by how much. Markets got a clue into the administration’s thinking by the end of the day,

Wall Street rallies to record highs as rate cut odds soar, fueled by easing inflation and investor confidence in Fed action next month.

U.S. consumer prices increased moderately in July, largely in line with expectations, though rising costs for goods because of import tariffs led to a measure of underlying inflation posting its largest gain in six months.