Traders Pile Into Bets That Next Fed Chair Will Slash Rates (1)

US rates traders have amassed a record futures bet that the Federal Reserve will take on a more dovish tilt right after Chair Jerome Powell’s term ends in May 2026.

The trade saw record volumes on Monday and swelled further Tuesday. The wager is that whomever President Donald Trump appoints to follow Powell will lead the central bank to cut interest rates almost immediately. The Fed’s first scheduled meeting under the new chief would come in June 2026.

For months, the president has been pressing Powell to lower borrowing costs, even as Fed officials have signaled that they ...