Bond Traders Brace for Fed Rate Hike
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- Bond traders are on edge as risks of a Federal Reserve rate hike mount for this week, per Bloomberg.
- Kevin Warsh chairs his second Fed meeting amid growing pressure to hike rates as price risks rebound and oil prices rip higher.
- Bloomberg reports the Fed faces mounting pressure to raise rates, with the odds of a hike surging alongside the oil price move.
Why it matters: A Fed hike at Warsh's second meeting would jolt bond markets already positioned for stability, and surging oil prices suggest the inflation backdrop is worsening — not easing — giving the Fed cover to act against market expectations.
