Traders are starting to bet that the Federal Reserve will cut interest rates sharply at least once before the end of the year, betting that the policy may be more aggressive than other market observers currently expect. Recent trading activity on options linked to the Guaranteed Overnight Financing Rate (SOFR) suggests that the market is stepping up the layout of a half-percentage point rate cut, possibly at a meeting later this month or in December. This expectation exceeds the two 25 basis point interest rate cuts currently included in interest rate swaps. Due to the long U.S. government shutdown, the release of key employment and other economic data has been delayed. Once the deadlock is resolved, a large amount of data will emerge to reveal the latest changes in economic conditions. Some expect the data could further signal economic weakness, supporting more interest rate cuts.