Fed funds closed at 0.15 percent on June 1 after trading from 0.14 percent to 0.28 percent and averaging 0.16 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 Treasuries maturing from June 2018 to May 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.
The central bank plans to purchase from $4.25 billion to $5.25 billion of securities today, according to the New York Fed’s website.
To contact the reporter on this story: Liz Capo McCormick in New York at email@example.com
To contact the editor responsible for this story: Dave Liedtka at firstname.lastname@example.org