The Globe and Mail reports in its Wednesday edition that bond investors are currently divided and exercising caution regarding the possibility of a recession in the world's largest economy. A Reuters dispatch to The Globe reports that the U.S. Federal Reserve is expected to cut interest rates on Wednesday for the first time in over four years. Some investors believe in a soft-landing scenario, arguing that recent weak U.S. data do not necessarily indicate an imminent recession. Others, however, are more pessimistic, pointing to concerning trends in the job market that could potentially lead to a significant economic downturn, prompting the Fed to aggressively reduce interest rates. At the end of its two-day policy meeting starting on Tuesday, the Fed is widely expected to reduce its benchmark overnight rate, which has been in a 5.25-per-cent to 5.5-per-cent target range since last July. On Monday, U.S. rate futures have settled on a 59-per-cent chance of a supersized 50-bps cut and a 41-per-cent probability of 25 bp. For 2024, the futures market is implying about 122 bps in cuts and about 250 bps of easing by September next year. Former New York Fed president William Dudley pushed for a 50-bp cut on Monday.