Traders Bet the Fed Will Hike Rates as Soon as July 2026
Traders in the US fed funds market are sharply ramping up short positions, betting that the Federal Reserve will begin raising interest rates as soon as July — a move that was previously considered unthinkable. The wager is a high-risk one, as it could be undone by upcoming economic data releases. A July rate hike would come as a major surprise to broader financial markets.
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