April 30 (Bloomberg) -- Fed funds, the U.S. overnight inter-bank lending rate, is projected to open in a range of 0.13 percent to 0.17 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.12 percent on April 27 after trading from 0.07 percent to 0.15 percent and averaging 0.12 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e-mailed statement. ICAP’s monthly average is 0.14 percent.
The central bank will acquire $1.5 billion to $2 billion of Treasuries maturing from February 2036 to February 2042. The purchases are the first in the Fed’s new 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.
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