Fed funds, the U.S. overnight inter-bank lending rate, opened at 0.16 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.07 percent yesterday after trading from 0.05 percent to 0.27 percent and averaging 0.14 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e-mailed statement.
The Federal Reserve Bank of New York announced yesterday that in the ’’near future’’ it will do another series of repurchase agreements with all counterparties, which are temporary open market operations. The action, which follows a similar one in August, doesn’t represent any change in monetary policy and is a test of the Fed’s operational tools.
The central bank will also acquire $2.75 billion to $3.5 billion of Treasury notes due from February 2020 to November 2022 as part of its current quantitative easing program, aimed at keeping long term borrowing costs low.