Feb. 27 (Bloomberg) -- Fed funds, the U.S. overnight inter-bank lending rate, is projected to open in a range of 0.1 percent to 0.14 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.05 percent on Feb. 24 after trading from 0.05 percent to 0.11 percent and averaging 0.09 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e-mailed statement. ICAP’s monthly average is 0.106 percent.
The central bank will acquire $4.25 billion to $5 billion of Treasuries due from February 2018 to February 2020 today as part of its plan to replace $400 billion of short-term debt in its portfolio with longer-term Treasuries to reduce borrowing costs further and counter rising risks of a recession.
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