Fed Funds Open at 0.16%, Within Range, ICAP Says
(Corrects opening fed fund rate in paragraph one.)
Fed funds, the U.S. overnight inter- bank lending rate, opened a 0.16 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.15 percent yesterday after trading from 0.05 percent to 0.16 percent and averaging 0.13 percent, according to ICAP Plc, the world’s largest inter-dealer broker.
The central bank will acquire Treasuries maturing from November 2017 to October 2018. The purchases are part of the Fed’s latest round of debt purchases, known as quantitative easing, aimed to keep long-term rates low and support economic growth.
The central bank plans to purchase from $4.75 billion to $5.75 billion of securities today, according to the New York Fed’s website.
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