[Fed Doves Overpower Hawks, Rate Cut Expectations Surge Within Days] Jin10 News, November 26 – Investors are ramping up bets that Federal Reserve policymakers will cut interest rates again at next month’s rate decision. This move has dispelled doubts from last week, which leaned toward no rate cuts, and paved the way for U.S. Treasury gains. Open interest in futures contracts tied to the Fed’s benchmark rate has surged over the past three trading days, with the January contract setting consecutive daily trading volume records last week. Current market pricing indicates about an 80% probability of a 25-basis-point rate cut at the Fed’s December meeting, compared to just 30% a few days ago. The shift in rate expectations began with the delayed release of September employment data last week, which painted a mixed economic picture. Subsequently, New York Fed President John Williams stated last Friday that, given the backdrop of a weakening labor market, he sees room for a rate cut “in the near term,” further reinforcing this expectation. “There is significant division within the Fed, but it seems the doves have overpowered the hawks,” said Tracy Chen, portfolio manager at Brandywine Global Investment Management.