Traders Face New Landscape With Powell at Microphone After Every Fed Meeting
- As Fed chairman speaks after each meeting, hedging may shift
- But quarterly forecast schedule seen keeping repricing minimal
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U.S. rates traders are gearing up for a new landscape in 2019, when Federal Reserve Chairman Jerome Powell plans to start holding press conferences after all eight of the central bank’s meetings.
Some shift in hedging activity in the options market is expected. Traders will have to prepare for the increased risk of a policy change at the four gatherings where the Fed chief previously didn’t take questions -- or at least for potentially market-moving comments.