Fed funds closed at 0.13 percent yesterday after trading from 0.09 percent to 0.3125 percent and averaging 0.13 percent, according to ICAP Plc, the world’s largest inter-dealer broker. ICAP’s monthly average is 0.111 percent.
The central bank will acquire $4.25 billion to $5 billion of 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 in an effort to reduce borrowing costs further and counter rising risks of a recession.
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