Option Traders See Payrolls Cementing Two or Three Cuts in 2026
The Marriner S. Eccles Federal Reserve building in Washington.
Photographer: Samuel Corum/BloombergShort-term interest-rate traders are coalescing around a bet that would pay off if the Federal Reserve cuts interest rates just two or three times this year.
Since earlier this month when President Donald Trump nominated Kevin Warsh to chair the central bank, traders have been piling into wagers on a dovish Fed. But now their bets are slightly more conservative ahead of a widely anticipated read on the jobs market set to be released Wednesday.