Business & Finance
Warsh Leaves Bond Traders in the Dark on Next Week’s Rate Move
Key Points
Warsh Leaves Bond Traders in the Dark on Next Week’s Rate Move The Kevin Warsh Fed is already putting its stamp on financial markets: Just days before the central bank’s next meeting, traders are still split on whether it’s going to raise interest rates or not. Swaps markets indicate traders see a roughly 30% chance that the Federal Reserve will raise its benchmark rate by a quarter-percentage point on July 29 and a 70% chance that it will keep it where it is.
Warsh Leaves Bond Traders in the Dark on Next Week’s Rate Move
The Kevin Warsh Fed is already putting its stamp on financial markets: Just days before the central bank’s next meeting, traders are still split on whether it’s going to raise interest rates or not.
Swaps markets indicate traders see a roughly 30% chance that the Federal Reserve will raise its benchmark rate by a quarter-percentage point on July 29 and a 70% chance that it will keep it where it is. That kind of split so close to a meeting has been exceedingly rare in recent years but may become far more common under Warsh, who as the new chairman has broken with his predecessors’ practice of hinting at the bank’s next moves in advance.