The likelihood of a Federal Reserve rate cut in September is now seen near 100% after new data showed U.S. inflation increasing 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.

U.S. Treasury Scott Bessent believes a bigger rate cut is warranted than the Fed's standard 25-basis-point increment, due to the Bureau of Labor Statistics' big revision to its May and June jobs numbers earlier this month.

Scott Helfstein, head of investment strategy at Global X, added that there’s “little evidence” tariffs are causing a meaningful rise in inflation at this point, noting that shelter and energy services like electricity and piped gas remain primary drivers.