There is heightened optimism the Federal Reserve will cut interest rates next month, with hopes boosted by a better-than-expected inflation report and Wall Street’s fear gauge falling to its lowest level this year, as the S&P 500 and Nasdaq jumped to new record highs Wednesday.

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.

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.