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Traders build record Fed-futures positions ahead of rate decision

The unusually large positioning reflects uncertainty over the Federal Reserve's next move before the policy announcement this week.

Reported · Written up by our desk · Central Banks

Traders have built record positions in futures tied to the Federal Reserve's benchmark interest rate ahead of this week's policy announcement, according to a report cited by Hedgeweek and based on Bloomberg's coverage.

The buildup signals that market participants are pricing in unusually high uncertainty about what the Fed will do next.

Hedgeweek said the development highlights how strongly positioning in rate-linked futures has shifted as investors prepare for the central bank decision.

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