If Powell fails to cut rates sharply, record bets will face losses

The Federal Reserve is about to announce its latest interest rate decision at 2 a.m. Beijing time on Thursday. If Fed officials choose to kick off the rate cut with a standard scale, the related record bets may cause traders to suffer heavy losses.

Data compiled by institutions show that in the October federal funds futures that investors use to bet on this week's resolution, trading activity has soared to the highest level comparable since the contract was launched in 1988. Most of these new bets are betting that the Fed will cut interest rates by 50 basis points#财经