Traders increase bets that under Wosh's leadership, the Federal Reserve may raise interest rates first and then cut them.

Golden Finance reports that on May 6, bond traders are increasing their bets, believing that the Federal Reserve’s next policy move is more likely to be a rate hike rather than a rate cut. The interest rate swap contracts currently tied to the central bank’s interest rate decision-making indicate that the market expects the probability of the Fed raising interest rates to exceed 50% by next April, and then only afterward could it shift to rate cuts. At the same time, more and more traders are increasing their positions to hedge against the risk that the probability of rate hikes will rise before the end of this year. As this shift appears in the market, policymakers’ disagreements over the interest rate outlook seem to be growing, especially in the backdrop of U.S. President Donald Trump pushing for rate cuts, as Kevin Warsh is about to take over as the Federal Reserve Chair. (Sina Finance)