Feb. 7 (Bloomberg) -- Fed funds, the U.S. overnight inter-bank lending rate, is projected to open between 0.06 percent and 0.1 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.1 percent yesterday after trading from 0.07 percent to 0.28 percent and averaging 0.11 percent, according to ICAP Plc, the world’s largest inter-dealer broker. ICAP’s monthly average is 0.11 percent.
The central bank will sell $1 billion to $1.5 billion of Treasury Inflation Protected Securities maturing from July 2012 to January 2015. The sale is part of the Fed’s program to replace $400 billion of short-term debt in its portfolio with longer-term Treasuries in an effort to reduce borrowing costs further and counter rising risks of a recession.
To contact the reporter on this story: Liz Capo McCormick in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Dave Liedtka at email@example.com