Fed Funds Projected to Open at 0.07% to 0.10%, ICAP Says
Fed funds, the U.S. overnight inter- bank lending rate, is projected to open in a range of 0.07 percent to 0.10 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.01 percent on Nov. 18 after trading from 0.01 percent to 0.12 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 0.081 percent.
The central bank will carry out two separate security sales today. It will sell Treasuries maturing from February 2012 to July 2012 at its customary 10:15 a.m. New York time. In the afternoon, the Fed will sell Treasuries maturing from March 2014 to November 2014. The sales are part of the Fed’s program to replace $400 billion of short-term debt in its portfolio with longer-term Treasuries to reduce borrowing costs further and counter rising risks of a recession.
The central bank plans to sell $8 billion to $8.75 billion of securities at each operation today, according to the New York Fed’s website.
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