Panic betting emerges in markets: If the war spirals out of control, the Federal Reserve may raise interest rates urgently within weeks.

CoinFeed reported on March 27th that bond traders, panicked by the potential escalation of the conflict with Iran, are seeking to hedge against the worst-case scenario—a possible interest rate hike by the Federal Reserve in the coming weeks. In the options market, which tracks Fed policy, demand for bets linked to the Secured Overnight Financing Rate (SOFR) has emerged, corresponding to a rate hike as early as two weeks ago. These trades will profit if the bond market significantly increases its expectations for a rate hike before the Fed's policy meeting on April 29th. This surge in hedging demand against an emergency rate hike marks a sharp reversal in market sentiment.