- Buy Crypto
- Markets
- Futures
- Spot
- Copy Trade
Earn- More
Market Expects Fed to Hold Rates in January, Options Market Increases Bet on Fed Standing Pat All Year
BlockBeats News, January 14th, more and more options traders are excluding the expectation of a Fed rate cut in 2026 and are instead betting on it maintaining the interest rate unchanged throughout the year. This trend can be traced back to at least last Friday when U.S. employment data showed an unexpected drop in the unemployment rate. According to market pricing, this has almost eliminated the possibility of a Fed rate cut this month, prompting more and more traders to postpone their expectations for a rate cut in the coming months. TJM Institutional Services interest rate strategist David Robin pointed out: "From a data perspective, the probability that the Fed will keep rates unchanged at least until March has increased, and as each meeting passes, the likelihood of rate stability increases." The options flow closely linked to the Fed's short-term benchmark rate has recently conveyed a more hawkish signal.
New option positions are mainly concentrated in March and June contracts to hedge against a scenario where the Fed's next rate cut action is continuously delayed. Positions targeting longer-dated contracts are expected to benefit from the Fed's stance of keeping rates unchanged throughout the year. Robin stated that the cost of these trades is low regardless of whether the market believes the Fed will stand pat. As a prudent risk manager, you would want to hold such positions. (FX678)
You may also like
Kevin Warsh Associated with Crypto Project Basis and Electric Capital
Key Takeaways Kevin Warsh, former U.S. Federal Reserve Board Governor, is associated with crypto initiatives Basis and Electric…
Ripple Co-Founder Initiates $40M Initiative to Combat California Wealth Tax
Key Takeaways Chris Larsen and Tim Draper initiate Grow California, a $40 million effort to counter a proposed…
JPMorgan’s Dimon Tells Coinbase’s Armstrong to Stop “Lying” About Crypto Bill
Key Takeaways: JPMorgan Chase CEO Jamie Dimon accused Coinbase CEO Brian Armstrong of misrepresenting banks’ role in opposing…
CZ Pushes Back on Claims Binance Triggered Historic $19B Crypto Liquidations
Key Takeaways: Changpeng Zhao, known as CZ, denies that Binance played a pivotal role in the $19 billion…
Coinbase Insider Trading Lawsuit Moves Forward Despite $2.9B Stock Sale Defense
Key Takeaways A Delaware court has allowed a shareholder lawsuit against Coinbase directors for alleged insider trading to…
Hong Kong-Based OSL Group Launches $200M Equity Raise for Stablecoin and Payments Expansion
Key Takeaways OSL Group, a prominent digital asset platform in Asia, has initiated a significant $200 million equity…
Gold Price Prediction: Current Trends and Future Outlook for January 28, 2026
Key Takeaways Gold and silver prices play a significant role in the global economy, reflecting both market trends…
Can the Gold Price Rise to $6,000?
Key Takeaways Gold prices in 2026 have experienced dramatic surges, reaching unprecedented levels in just the first month…
Crypto Exchanges Are Paying Millions to Sponsor Football Teams. Here's Why WEEX Bet on LALIGA
Explore why crypto exchanges are racing into football sponsorships, and how the WEEX × LALIGA partnership reflects a long-horizon strategy shaped by crypto trading decision discipline and downside control.
Enso’s Recent Liquidation Sparks Market Volatility
Key Takeaways Enso experienced a dramatic $11.67 million in liquidations, with a significant 70.7% involving short positions, indicating…
South Korea’s Coinone Considers Stake Sale Amid Rising Coinbase Interest
Key Takeaways Coinone, a regulated cryptocurrency exchange in South Korea, is contemplating a significant stake sale as consolidation…
Could Europe Sell US Debt if a Greenland Deal Doesn’t Come Through?
Key Takeaways The geopolitical tensions involving Greenland could lead Europe to consider offloading US debt as a strategic…
Crypto’s Next Battle: Privacy Faces a Chicken-Egg Dilemma with Regulators
Key Takeaways The integration of cryptocurrencies into bank systems is fueling a privacy versus transparency conflict. Privacy-preserving tech…
What the Tightest Part of the LALIGA Season Teaches About Crypto Trading Under Pressure
As pressure builds late in the LALIGA season, decision quality becomes the real differentiator. The same logic applies to disciplined crypto trading under volatility.
Massachusetts Judge Prohibits Kalshi from Offering Sports Bets
Key Takeaways A judge in Massachusetts has prohibited the prediction markets platform, Kalshi, from facilitating sports betting within…
Revolut Pursues Banking Expansion in Peru Amid Latin America Remittance Strategies
Key Takeaways Revolut seeks a banking license in Peru as part of its strategic expansion across Latin America,…
Crypto’s Next Challenge: Privacy and the Chicken-Egg Dilemma
Key Takeaways Privacy is becoming a central issue as cryptocurrencies move into traditional banking and state-backed systems. Regulatory…
Original Content Blocked: Importance of API Management
Key Takeaways: API management is crucial in preventing disruptions due to excessive requests. Implementing effective controls and monitoring…
Kevin Warsh Associated with Crypto Project Basis and Electric Capital
Key Takeaways Kevin Warsh, former U.S. Federal Reserve Board Governor, is associated with crypto initiatives Basis and Electric…
Ripple Co-Founder Initiates $40M Initiative to Combat California Wealth Tax
Key Takeaways Chris Larsen and Tim Draper initiate Grow California, a $40 million effort to counter a proposed…
JPMorgan’s Dimon Tells Coinbase’s Armstrong to Stop “Lying” About Crypto Bill
Key Takeaways: JPMorgan Chase CEO Jamie Dimon accused Coinbase CEO Brian Armstrong of misrepresenting banks’ role in opposing…
CZ Pushes Back on Claims Binance Triggered Historic $19B Crypto Liquidations
Key Takeaways: Changpeng Zhao, known as CZ, denies that Binance played a pivotal role in the $19 billion…
Coinbase Insider Trading Lawsuit Moves Forward Despite $2.9B Stock Sale Defense
Key Takeaways A Delaware court has allowed a shareholder lawsuit against Coinbase directors for alleged insider trading to…
Hong Kong-Based OSL Group Launches $200M Equity Raise for Stablecoin and Payments Expansion
Key Takeaways OSL Group, a prominent digital asset platform in Asia, has initiated a significant $200 million equity…
App