Fed funds, the U.S. overnight inter-bank lending rate, is projected to open in a range of 0.09 percent to 0.13 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.10 percent yesterday after trading from 0.04 percent to 0.14 percent and averaging 0.09 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e- mailed statement. ICAP’s monthly average is 0.085 percent.
The central bank will acquire Treasury Inflation Protected Securities maturing from April 2013 to February 2041. The purchases are part of the Fed’s policy of continuing to reinvest the proceeds of maturing assets on its balance sheet to prevent a tightening of monetary policy.
The central bank plans to purchase $250 million to $750 million of securities today, according to the Federal Reserve Bank of New York’s website.
To contact the reporter on this story: Liz Capo McCormick in New York at firstname.lastname@example.org
To contact the editor responsible for this story: David Liedtka at email@example.com