- 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
Tether Freezes $182 Million in Assets in a Day: Is USDT Still a Neutral Coin?
Key Takeaways Tether recently froze $182 million in USDT across five wallets on the Tron blockchain, raising questions…
a16z Secures $15 Billion: Redefining Venture Capital Through Visionary Storytelling
Key Takeaways a16z Raises Capital: The firm has raised an astronomical $15 billion, marking a significant point in…
BitGo’s Revenue Surges with Upcoming IPO as Institutional Interest Grows
Key Takeaways BitGo, a major player in cryptocurrency custody, aims to raise $201 million through a U.S. IPO…
80% of Oil Revenue Settled in Stablecoins: Venezuela’s USDT Dominance
Key Takeaways Venezuela’s economy heavily relies on USDT, with 80% of oil revenue settled using this stablecoin, showcasing…
Tether Freezes $182 Million in Assets in One Day, Is USDT Still a Neutral Coin?
Error Prevented Content Extraction: Causes and Solutions
Key Takeaways Excessive requests can result in blocked access to data sources. Ensuring adherence to API usage policies…
80% of oil income settled in stablecoins, Venezuela makes USDT its second currency
After Stepping Down as Mayor of New York City, He Pivoted to Selling Cryptocurrency
New Drag-to-Set TP/SL Candlestick Chart Feature on Web
Make risk management more intuitive and efficient! The WEEX web platform is introducing the "Drag-to-set TP/SL" feature.
Crypto Rich Threaten to Depart California Amid New Tax Proposal
Key Takeaways Proposed California tax imposes a 5% assets tax on residents with over $1 billion, sparking debate…
zkSync Price Forecast – ZK Value Anticipated to Decline to $0.026629 by January 15, 2026
Key Takeaways zkSync’s current price is $0.034635, with an anticipated drop to $0.026629 by mid-January 2026. The crypto…
South Korea to Lift Longstanding Ban on Corporate Crypto Investments
Key Takeaways South Korea is lifting a nine-year ban on corporate cryptocurrency investments, allowing firms to invest up…
Coinbase May Withdraw Support for CLARITY Act Amid Stablecoin Rewards Ban Debate
Key Takeaways Potential Withdrawal: Coinbase is considering withdrawing support for the CLARITY Act if it restricts stablecoin rewards.…
Crypto Crucial: Will Tax Threats Push California’s Wealthiest to Flee?
Crypto billionaires in California are contemplating relocation due to a proposed wealth tax targeting assets over $1 billion.…
Crypto Project Failures Hit Record in 2025 Amid Memecoin Turbulence
Key Takeaways Memecoin launchpads have saturated the crypto market in 2025, leading to an unprecedented number of token…
Telegram 2025 Financial Report Puzzle: Revenue Soars by 65%, Yet Plagued by $200 Million Loss Due to TON?
Crypto and AI: the hidden digital gray market of Xianyu
Crypto and AI: You Can Buy Anything on Xianyu.
Vietnam Sets Mid-January Timeline for Pilot Crypto Exchange Approvals
Key Takeaways Vietnam aims to regulate its growing cryptocurrency market by licensing pilot digital asset exchanges under a…
Tether Freezes $182 Million in Assets in a Day: Is USDT Still a Neutral Coin?
Key Takeaways Tether recently froze $182 million in USDT across five wallets on the Tron blockchain, raising questions…
a16z Secures $15 Billion: Redefining Venture Capital Through Visionary Storytelling
Key Takeaways a16z Raises Capital: The firm has raised an astronomical $15 billion, marking a significant point in…
BitGo’s Revenue Surges with Upcoming IPO as Institutional Interest Grows
Key Takeaways BitGo, a major player in cryptocurrency custody, aims to raise $201 million through a U.S. IPO…
80% of Oil Revenue Settled in Stablecoins: Venezuela’s USDT Dominance
Key Takeaways Venezuela’s economy heavily relies on USDT, with 80% of oil revenue settled using this stablecoin, showcasing…
Tether Freezes $182 Million in Assets in One Day, Is USDT Still a Neutral Coin?
Error Prevented Content Extraction: Causes and Solutions
Key Takeaways Excessive requests can result in blocked access to data sources. Ensuring adherence to API usage policies…
App