Traders bet that the Federal Reserve will cut interest rates at least once by the end of the year, possibly by as much as 50 basis points

ChainCatcher news, according to Jin10 reports, traders have begun to bet that the Federal Reserve will cut interest rates significantly at least once before the end of the year, expecting the policy to be more aggressive than other market observers. Recent trading activity in options linked to the Secured Overnight Financing Rate (SOFR) shows that the market is increasing its positioning for a half-percentage point rate cut, which could occur at the later meeting this month or in December. This expectation exceeds the two cuts of 25 basis points each currently priced into the interest rate swaps.