Bloomberg, CME Bond futures traders are ramping up bets on a dovish policy shift at the Federal Reserve as BlackRock Inc.’s chief investment officer Rick Rieder is gaining momentum to succeed Jerome Powell. In recent days, a wave of flows in the interest rate futures market linked to the Secured Overnight Financing Rate and the fed funds rate, the Fed’s policy benchmark, has been gathering pace just as Rieder’s odds to be the next Fed chair climbed to the top spot in betting markets. Most Read from Blo ...

Core Insights - The U.S. dollar remains stable as investors await the Federal Reserve's policy announcement and Chair Jerome Powell's comments [1] Group 1: Federal Reserve Rate Expectations - A 25-basis-point rate cut is anticipated with nearly 90% probability, with expectations for two additional cuts next year [2] - Speculation suggests the Fed may adopt a cautious stance regarding further rate cuts, which could negatively impact the U.S. dollar and Treasury yields [2] Group 2: Market Reactions - Any indication from Powell that the Committee is leaning towards a more dovish policy could lead to a decline in both the dollar and long-term yields [3]