Traders still see at least two jumbo Fed cuts soon

Great strides: A jogger passing by the Fed building. Traders are increasingly positioning themselves for roughly 150 basis points of cuts by the central bank’s Jan 29 policy decision. — Reuters

NEW YORK: Traders in the US interest-rate options market are still betting on at least one super-sized Federal Reserve (Fed) interest-rate cut this year – just probably not before the Nov 5 US election.

Ahead of next week’s central bank policy gathering, Fed swaps reflect expectations for a quarter-point cut, with only a scant possibility for something bigger.