Bitwise Advisor: Despite Market Pricing in a 90% Probability of a Rate Hike, Still Expects the Fed to Hold Steady

BlockBeats news, September 16: Bitwise advisor Jeff Park posted that although market pricing shows about a 90% probability of a Fed rate hike, he expects Fed Chair Kevin Warsh will ultimately choose to keep rates unchanged.

Based on his understanding of Warsh's policy philosophy and current observations, holding steady is the decision with the highest expected return. He acknowledged this judgment could be wrong, but believes that when market positioning is highly concentrated in a rate-hike scenario, the related convexity opportunity is worth watching.