If Fed officials choose to pull off a rate cut in a standard way, the record bets could leave traders with big losses. Data compiled by the media show that activity in October Fed funds futures, used by investors to bet on Wednesday's decision, has surged to the highest level since the contract was launched in 1988. Most of these new bets are that the Fed will cut rates by 50 basis points. The data show that the relevant positions have surged this week. Subadra Rajappa, head of US interest rate strategy at Socie ́ te ́ Ge ́ ne ́ rale, said this has left the market under intense selling pressure in the face of a smaller Fed rate cut and a gradual message from Jerome Powell. " If the Fed cut rates by 25 basis points instead of 50, the market reaction would be much stronger, "she said." Points of positioning, optimism, looser financial conditions and the like could be tested. "