Traders are piling into bets that a new Federal Reserve chair and the release of delayed economic data this month will support Donald Trump’s calls for lower interest rates.
In the US futures market, demand is building for short-term curve structuresBloomberg Terminal linked to the Secured Overnight Financing Rate, which closely tracks perceived outcomes of Fed interest rate decisions. The wagers reflect the potential for monetary policy easing to gather pace after chair Jerome Powell’s term ends in May. The June 17 announcement will be the first under a new central bank chief.