Fed funds closed at 0.28 percent yesterday after trading from 0.07 percent to 0.28 percent and averaging 0.13 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e- mailed statement. ICAP’s monthly average is 0.113 percent.
The central bank will acquire $1 billion to $1.5 billion of Treasury Inflation Protected Securities maturing from July 2018 to February 2042. 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 keep long-term borrowing costs low.
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