Federal Reserve Chair Jerome Powell said the Federal Reserve may cut interest rates, raising expectations the central bank will lower the fed funds rate when its policy committee next meets in September.

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.

A Federal Reserve interest rate cut in September, the first this year, followed perhaps by another before year-end remains the base forecast for most economists polled by Reuters.