---
title: "Dovish SOFR option positions expect the Federal Reserve to cut interest rates by 100 basis points in 2025"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/226014053.md"
description: "According to data from the Federal Reserve Bank of New York, the Secured Overnight Financing Rate (SOFR) was reported at 4.30% on the last trading day (January 22), up from 4.29% the previous day. Earlier on the 23rd, the SOFR options market saw capital flows including a bullish position expiring in December 2025, with traders expecting the Federal Reserve to have room for a 100 basis point rate cut in 2025. The effective federal funds rate was reported at 4.33% on the last trading day, unchanged from the previous day"
datetime: "2025-01-23T14:11:37.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/226014053.md)
  - [en](https://longbridge.com/en/news/226014053.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/226014053.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/226014053.md) | [繁體中文](https://longbridge.com/zh-HK/news/226014053.md)


# Dovish SOFR option positions expect the Federal Reserve to cut interest rates by 100 basis points in 2025

According to data from the Federal Reserve Bank of New York, the Secured Overnight Financing Rate (SOFR) was reported at 4.30% on the last trading day (January 22), up from 4.29% the previous day.

Earlier on the 23rd, the SOFR options market saw capital flows including a bullish position expiring in December 2025, with traders expecting the Federal Reserve to have room to cut rates by 100 basis points in 2025.

The effective federal funds rate was reported at 4.33% on the last trading day, unchanged from the previous day

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