Traders bet that the pace of rate cuts by the Federal Reserve will accelerate, positioning ahead of economic data releases and the Chairman's selection.

Traders are concentrating their bets on the appointment of the new chairman of the Federal Reserve and the delayed economic data releases this month, which will support President Donald Trump's call for interest rate cuts. In the U.S. futures market, the demand for the short-term interest rate curve structure linked to secured overnight funding rates is increasing, closely reflecting market expectations for the Federal Reserve's interest rate decisions. These bets reflect that the pace of monetary policy easing may accelerate after Chairman Jerome Powell's term ends in May next year. The statement on June 17 next year will be the first public statement from the new Federal Reserve chairman. With White House National Economic Council Director Kevin Hassett becoming a frontrunner to replace Powell, the market is starting to position for new positions. Trump said at a cabinet meeting on Tuesday that the race for Federal Reserve chairman has "narrowed down to one person" and called Hassett a "potential Federal Reserve chairman". He said he would announce the final decision early next year.