**[Traders Bet the Federal Reserve Will Continue Cutting Rates Next Year Instead of Hiking Them]** According to a report by Golden Finance, traders in the U.S. futures and options markets are betting that the Federal Reserve will continue cutting interest rates next year rather than raising them. The spread of Secured Overnight Financing Rate (SOFR) futures, which is closely tied to the Fed's expected policies, is significantly inverted—indicating that traders are beginning to anticipate a longer-lasting easing cycle by the central bank. Previously, traders had been betting that the Fed would cut rates twice by 25 basis points before the end of this year and resume rate hikes in 2027. However, the increasingly heated debate surrounding the impact of artificial intelligence on the labor market has prompted them to reassess these expectations. Jack McIntyre, portfolio manager at Brandywine Global, stated: "The question is how AI will lead to inflation. The only way AI might cause inflation is through the construction of data centers and the associated energy demand." Meanwhile, in the spot market, traders are lacking confidence in how to allocate U.S. Treasury bonds. JPMorgan's latest client survey (as of the week ending February 23) shows that neutral positioning has reached its highest level since the end of 2024. *(Jin10 Data APP)*