Fed Funds Projected to Open at 0.05% to 0.10%, ICAP Says
Fed funds, the U.S. overnight inter- bank lending rate, is projected to open in a range of 0.05 percent to 0.10 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.04 percent yesterday after trading from 0.04 percent to 0.10 percent and averaging 0.08 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e- mailed statement. ICAP’s monthly average is 0.08 percent.
The central bank will acquire Treasury Inflation Protected Securities maturing from January 2018 to February 2041. The purchases are part of the Fed’s program to replace $400 billion of short-term debt in its portfolio with longer-term Treasuries in an effort to reduce borrowing costs further and counter rising risks of a recession.
The central bank plans to purchase $1 billion to $1.5 billion of securities today, according to the New York Fed’s website.
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