Bond traders are fully pricing in an interest-rate hike by the Federal Reserve this year, a sign of conviction in the market that Chair Kevin Warsh will need to move quickly to combat inflation.
Traders boosted their bets for higher rates on Friday after Fed Governor Christopher Waller — among the most dovish policymakers over the past year — said that based on the inflation trend, the central bank’s next policy statement should “make it clear that a rate cut is no more likely in the future than a rate increase.”
