[Traders Increase Bets on Fed Under Kevin Warsh to Hike Rates Before Cutting Them] Gold Finance reported on May 6 that bond traders are ramping up bets, believing the Federal Reserve's next policy move is more likely to be a rate hike rather than a cut. Swap contracts tied to central bank interest rate decisions currently indicate that the market expects the probability of a Fed rate hike by April next year to exceed 50%, followed by a potential rate cut. Meanwhile, an increasing number of traders are adding positions to hedge against the rising risk of a rate hike before the end of this year. This market shift comes as policymakers appear increasingly divided on the outlook for interest rates, and with U.S. President Donald Trump advocating for rate cuts, Kevin Warsh is set to take over as Federal Reserve Chair.