Traders Pile Into Bets That Next Fed Chair Will Slash Rates
Television stations broadcast Jerome Powell speaking after a Federal Open Market Committee meeting on the floor of the New York Stock Exchange in May.
Photographer: Michael Nagle/BloombergTakeaways by Bloomberg AI
US rates traders have amassed a record futures bet that the Federal Reserve will take on a more dovish tilt right after Chair Jerome Powell’s term ends in May 2026.
The trade saw record volumes on Monday and swelled further Tuesday. The wager is that whomever President Donald Trump appoints to follow Powell will lead the central bank to cut interest rates almost immediately. The Fed’s first scheduled meeting under the new chief would come in June 2026.