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 0.28 percent on May 4 after trading from 0.09 percent to 0.28 percent and averaging 0.15 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e-mailed statement. ICAP’s monthly average is 0.153 percent.
The central bank will acquire $1.5 billion to $2 billion to 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.