Interest rate options traders have increased their bets that the Federal Reserve will cut interest rates by 50 basis points this month, reflecting increasing speculation in the market that policymakers will take proactive action to prevent the economy from falling into trouble. At present, swap contracts indicate a probability of about one-third for the Federal Reserve to cut interest rates by 50 basis points this month. Options linked to the Guaranteed Overnight Financing Rate (SOFR) show a significant surge in open interest contracts (i.e. the number of positions held by traders) among some call contracts expiring on September 13th. @sewilyaw