Traders Bet the Fed Will Cut Rates by More Than 25 Basis Points Next Month
According to ChainCatcher, citing Jinshi News, traders are flocking to a specific options bet, anticipating that the Federal Reserve will cut rates by more than 25 basis points next month. Since the beginning of this month, there has been strong demand for positions related to the Secured Overnight Financing Rate (SOFR), which is closely tied to policy expectations. This week, traders have further increased their bets, with open interest in contracts targeting a 50 basis point rate cut rising sharply. Despite a short-term pullback, traders remain confident that a rate cut will occur next month.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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