Bond Options Traders Split on Fed Rate Path as Warsh Era Begins

Bond Options Traders Split on Fed Rate Path as Warsh Era Begins Options traders are increasingly divided over the Federal Reserve’s near-term rate path, with conflicting bets that span from cuts to various degrees of hikes over the coming months. While the swaps market is pricing in with almost certainty that the Fed will hold rates at its Wednesday meeting, all eyes will turn to Chairman Kevin Warsh’s first press conference for clues on the future. That view is unknown even as the US and Iran prepare to formally sign an interim peace deal, which has subsequently sent oil prices tumbling to its lowest levels in three months, providing some inflationary relief. [Image text:] F RESERV FEDERAL