A trader recently invested $26,954 in contracts betting against “Exactly 1 cut” in a prediction market on whether the Fed will cut rates once. This trade is one of the largest seen on a prediction market in the last day. The market, run by Kalshi, saw 58,556 contracts traded in the past day with a 95% chance of the bet paying off at the time of the trade on 10/01 at 10:52 AM EST. The market rules state that if the Fed cuts rates once before 2026, the market resolves to Yes. Prediction markets like these offer real-time insights into market sentiment on future economic policies, like central bank rate decisions, allowing for better risk assessment and decision-making in the financial ecosystem.

Read more at Quiver Quantitative: A Trader Just Bet $26,954 Against Exactly 1 Fed Rate Cut