Traders Put Their Money Where Warsh's Mouth Is The market's sudden shift in expectations regarding the Federal Reserve's interest rate hikes is a stark reminder of how quickly circumstances can change in high finance.
What was once considered a sure thing – a series of rate reductions under incoming Chair Kevin Warsh – has given way to a new consensus: the Fed will indeed hike rates by December, and traders are placing their bets accordingly.
This development is not entirely unexpected, considering the recent shift in tone from Fed officials.