Fed Funds Projected to Open at 0.14% to 0.18%, ICAP Says
Fed funds closed at 0.15 percent yesterday after trading from 0.1 percent to 0.23 percent and averaging 0.13 percent, according to ICAP Plc, the world’s largest inter-dealer broker.
The central bank will buy $4.25 billion to $5.5 billion of Treasuries maturing from August 2018 to May 2020. The purchases are part of the Fed’s program to replace $267 billion of short- term debt in its portfolio with longer-term Treasuries in an effort to keep borrowing costs low.
The Federal Reserve Bank of New York may also add reserves to the banking system through repurchase agreements as part of an “operational readiness program.” The transactions don’t represent any change in Fed monetary policy and are part of the central bank’s efforts to test its readiness to conduct temporary open market operations.
To contact the editor responsible for this story: Dave Liedtka at email@example.com