Traders are ramping up bets on Federal Reserve rate cuts after fresh inflation data triggered a rally in short-term interest rate futures. The market's reaction points to growing expectations that the Fed may shift toward easier monetary policy sooner than previously thought. This kind of move typically ripples across asset classes—when traditional rate expectations shift, it often reshapes investor appetite for alternative assets. For those watching crypto positions, these Fed signals matter: lower rates historically correlate with increased risk appetite and reallocation flows into higher-yielding or more volatile instruments. The surge in rate futures reflects traders quickly pricing in the new economic narrative.