#communityAMA • Fed Watch Tools: • Use tools like the CME FedWatch Tool to gauge market expectations for rate changes. Traders can build positions ahead of expected policy moves. • Interest Rate Correlation Trading: • Correlation analysis between interest rates and assets like gold, oil, and bonds can inform trading strategies. • Sector Rotation: • Adjust portfolios by rotating into interest-rate-sensitive sectors when anticipating rate cuts and into financials and commodities during hikes. • Options and Futures Hedging: • Hedging against rate uncertainty using interest rate futures and options can reduce portfolio risk.