On the eve of the Federal Reserve's key meeting (where market expectations widely anticipate officials will implement the first policy easing in nine months), U.S. President Donald Trump predicted that the Fed would take action for a "significant rate cut" this week.

"I think they're going to have a significant rate cut," Trump told reporters on Sunday while returning to Washington, "and now is the best time for it."

Due to a slowing labor market, persistently stubborn inflation, and unprecedented pressure from Trump to lower borrowing costs, the market widely expects the Fed to announce a rate cut on September 17. The median forecast among economists is a 25 basis point cut.

For months, Trump has been pressuring Fed Chair Jerome Powell to push for rate cuts and has repeatedly publicly urged Powell to resign.

Recent weak economic reports have raised concerns: the labor market may be heading into a deeper slowdown, thereby threatening consumer spending and economic growth. At the same time, the current inflation rate remains above the Fed's 2% target; if tariff policies drive up goods costs, inflation could climb further, leading some Fed officials to be cautious about "acting too quickly on policy."

Powell's term as Fed Chair ends in May 2026, and Trump is currently working to finalize his successor. Trump has publicly nominated three main candidates: White House Economic Advisor Kevin Hassett, Fed Governor Christopher Waller, and former Fed Governor Kevin Warsh.