Fed funds closed at 0.11 percent on May 11 after trading from 0.08 percent to 0.28 percent and averaging 0.15 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e- mailed statement. ICAP’s monthly average is 0.156 percent.
The central bank will acquire $4.25 billion to $5 billion of Treasuries maturing from May 2018 to February 2020. The purchases are the first in the Fed’s new 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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