Jan. 23 (Bloomberg) -- Fed funds, the U.S. overnight inter-bank lending rate, is projected to open in a range of 0.06 percent to 0.09 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.06 percent on Jan. 20 after trading from 0.05 percent to 0.28 percent and averaging 0.10 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e-mailed statement. ICAP’s monthly average is 0.077 percent.
The central bank will acquire Treasuries maturing from August 2022 to February 2031. The purchases are part of the Fed’s program to replace $400 billion of short-term debt in its portfolio with longer-term Treasuries to reduce borrowing costs further and counter risks of a recession.
The central bank plans to buy $1.5 billion to $2 billion of securities today, according to the New York Fed’s website.
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