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Fed Funds Projected to Open at 0.16% to 0.18%, ICAP Says

Fed funds, the U.S. overnight inter- bank lending rate, is projected to open in a range of 0.16 percent to 0.18 percent, within the Federal Reserve’s target of zero to 0.25 percent.

Fed funds closed at 0.16 percent on Nov. 16 after trading from 0.1 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.

The central bank will sell Treasuries maturing from July 2015 to November 2015. The sales are the first in the Fed’s new program to replace short-term debt in its portfolio with longer- term Treasuries in an effort to reduce borrowing costs.

To contact the reporter on this story: Liz Capo McCormick in New York at emccormick7@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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