The interest rate landscape shifted dramatically today as traders repositioned for a more hawkish Fed trajectory. The April 2027 Fed funds market above 2.00% jumped from 29¢ to 79¢, while the above 3.00% contract surged from 30¢ to 65¢. This coordinated movement across rate thresholds suggests the market is pricing in significantly higher borrowing costs by spring 2027. J.P. Morgan Global Research expects the Fed to hold rates steady for the rest of 2026, before hiking 25 basis points in the third quarter of 2027. Today's pricing appears aligned with that hawkish outlook, as traders position for an environment where upside risks to inflation and downside risks to employment are elevated. The dramatic repricing reflects growing conviction that the Fed's next move will be up, not down.