Fed Funds Open at 0.08%, Within Target Range, According to ICAP

Fed funds, the U.S. overnight inter-bank lending rate, opened 0.08 percent, within the Federal Reserve’s target of zero to 0.25 percent.

Fed funds closed at 0.05 percent yesterday after trading from 0.05 percent to 0.25 percent and averaging 0.08 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e-mailed statement.

The central bank will acquire $2 billion to $2.5 billion Treasuries maturing from May 2021 to February 2024. The permanent open market operations 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 Fed may also conduct a test of an overnight fixed-rate reverse repo facility. The temporary open-market operations will use Treasuries as collateral.

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

To contact the editors responsible for this story: Robert Burgess at bburgess@bloomberg.net Paul Cox

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