"Shadow Chairman" effect emerging? Traders are betting heavily that the Federal Reserve will quickly cut interest rates after Powell steps down

U.S. interest rate traders are betting that the Federal Reserve will quickly cut rates after the current chairman Jerome Powell's term ends. The new chairman is expected to initiate rate cuts at the first meeting in June 2026. Related futures trading volume has reached a record high, with the market widely expecting the Federal Reserve to maintain interest rates at the Wednesday meeting and possibly lower rate cut expectations. Traders are betting that the FOMC will cut rates by about 43 basis points by the end of the year, with a potential 25 basis point cut as early as September. Bets are primarily concentrated in the futures market linked to SOFR