Traders Ramp Up Bets Warsh’s Fed Could Hike Rates Before Cutting

Bond traders are boosting wagers that the Federal Reserve’s next policy move could be an interest rate hike rather than a cut.

Swaps linked to central bank rate decisions are currently pricing more than a 50% chance that the Fed raises rates by next April, before easing. A growing chorus of traders is also ramping up positions looking to hedge the prospect of rate-hike odds rising by the end of the year.