The Federal Reserve under Kevin Warsh has begun to leave a distinct mark on financial markets; With just days left until the next rate meeting, traders remain sharply divided over whether the central bank will raise interest rates
The Federal Reserve under Kevin Warsh has begun to leave a distinct mark on financial markets. With just days left until the next rate meeting, traders remain sharply divided over whether the central bank will raise interest rates. The interest rate swap market shows that traders believe that the probability of the Fed raising interest rates by 25 basis points next week is about 30%, and the probability of keeping unchanged is about 70%. It's rare in recent years for such deep divisions to remain so close to a meeting, but it may become more common under Warsh. As the new chairman, Warsh broke with his predecessor's tradition of hinting at the central bank's next move.