Traders are increasingly speculating on Federal Reserve interest rate cuts for December and January, following a strong endorsement from a major financial institution.

The volume of contracts for January and February saw a significant increase on Friday, with record trading activity observed in the fed funds futures market. Experts from the financial institution have advised purchasing the February contract, which has contributed to the heightened interest among traders.

This change in sentiment reflects the growing anticipation of a potential easing of monetary policy in the upcoming months.