Fed Funds Opens at 0.08%, Within Fed’s Target Range, ICAP Says

Fed funds, the U.S. overnight inter- bank lending rate, opened at 0.08 percent, within the Federal Reserve’s target of zero to 0.25 percent.

Fed funds closed at 0.10 percent on Nov. 25 after trading from 0.05 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.

The central bank will acquire Treasuries maturing from February 2020 to November 2021. The purchases 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 Fed plans to purchase $4.25 billion to $5 billion of securities today, according to the New York Fed’s website.

To contact the reporter on this story: Liz Capo McCormick in New York at emccormick7@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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