Fed funds, the U.S. overnight inter-bank lending rate, opened at 0.17 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.28 percent on May 18 after trading from 0.14 percent to 0.28 percent and averaging 0.16 percent, according to ICAP Plc, the world’s largest inter-dealer broker. ICAP’s monthly average is 0.156 percent.
The central bank will acquire $1.5 billion to $2 billion of Treasuries maturing from February 2036 to May 2042. The purchases are 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.