Former Dallas Fed President Robert Kaplan expects the Fed to cut rates in September.

“If I were sitting in my former seat, I’d be getting ready to cut the rates in September,” Kaplan said on Monday. “I wouldn’t make any commitments between now and then, but I think they’re going to position to cut rates in September, and they’ll take it then one meeting at a time.”

Ed Yardeni, president of Yardeni Research, describes the market as being in a “slow-motion melt-up.” Investors seem to believe that the Federal Reserve will quickly lower interest rates if the economy significantly slows down or enters a recession, Yardeni said.

This week could offer more clarity on the market’s direction, with Federal Reserve Chairman Jerome Powell set to testify before Congress on Tuesday and Wednesday, and crucial inflation data due on Thursday, potentially influencing interest rate expectations.