Fed funds closed at 0.28 percent yesterday after trading from 0.06 percent to 0.28 percent and averaging 0.14 percent, according to ICAP Plc, the world’s largest inter-dealer broker.
The central bank will acquire $1.75 billion to $2.25 billion of Treasuries maturing from February 2036 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 reduce borrowing costs further and counter rising risks of a recession.
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