Fed funds closed at 0.10 percent yesterday after trading from 0.06 percent to 0.20 percent and averaging 0.11 percent, according to ICAP Plc, the world’s largest inter-dealer broker.
The central bank will acquire Treasury Inflation Protected Securities maturing from July 2018 to February 2041 today. 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 recession risk.
The central bank plans to buy $1 billion to $1.5 billion of securities today, according to the New York Fed’s website.
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