Traders expect recession risk to force the Federal Reserve to boost the economy through interest rate cuts

According to BlockBeats, on March 12th, traders in the futures and options markets were betting that the Federal Reserve's interest rate cuts this year would exceed expectations due to the aggressive policy agenda of the Trump administration. Washington's tough comments on tariff issues have pushed investors to safe haven assets such as US treasury bond bonds. If the signs of recent economic difficulties continue to increase, US treasury bond will become more attractive. On Monday, the rising possibility of economic recession stimulated new demand for short-term and long-term US treasury bond bond futures. Options traders expect that the risk of recession will increase pressure on the Federal Reserve, forcing it to boost the economy through interest rate cuts in the coming months. This has led to a growing demand for two-year call options on US Treasury bonds, which will yield returns if the Federal Reserve becomes more aggressive on interest rate issues. The premium of these call options on US Treasury bonds has risen to its highest point since September last year, when concerns about an economic slowdown were sparked by a slowdown in job growth during Biden's last few months as president. (Golden Ten)