Fed Funds Projected to Open at 0.15% to 0.18%, ICAP Says
Fed funds closed at 0.15 percent yesterday after trading from 0.13 percent to 0.2 percent and averaging 0.16 percent, according to ICAP Plc, the world’s largest inter-dealer broker.
The central bank will acquire Treasuries maturing from February 2036 to May 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.
The central bank plans to purchase from $1.5 billion to $2.25 billion of securities today, according to the New York Fed’s website.
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