According to CoinMeta, the Federal Reserve decided at its July meeting to maintain interest rates at 3.5%-3.75% unchanged, leading to the closing of hedging positions worth $5 trillion that the market had established in anticipation of a rate hike. In August, the number of open contracts for federal funds futures exceeded 1 million, but after the decision was announced, that number decreased by about 140,000. The net short positions of leveraged funds reversed, and the price of federal funds futures rose, resulting in losses for those who bet on a rate hike. Federal Reserve Chairman Kevin Warsh did not signal any further rate hikes, which cooled down related trading activities. This decision clarified the defensive stance of current monetary policy and provided the financial markets with much-needed stability in terms of liquidity expectations.