Positioning in futures tied to the Federal Reserve's benchmark interest rate surged to an all-time high as traders positioned themselves for the risk that the Federal Reserve could start raising interest rates on Wednesday
Positioning in futures tied to the Federal Reserve's benchmark interest rate surged to an all-time high as traders positioned themselves for the risk that the Federal Reserve could start raising interest rates on Wednesday. The number of open interest contracts in federal funds rate futures that will be settled after the announcement of this interest rate decision exceeds the previous record set by the October 2024 contract; at that time, the market was equally divided on the outcome of the Federal Reserve meeting. CME data showed that open interest reached 909,714 contracts on Friday and further increased to 967,136 contracts on Monday. The deal reflects a significant divergence in market expectations about the Fed's next move.