Fed Funds Projected to Open at 0.16% to 0.18%, ICAP Says
Fed funds, the U.S. overnight inter- bank lending rate, is projected to open in a range of 0.16 percent to 0.18 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.17 percent yesterday after trading from 0.14 percent to 0.17 percent and averaging 0.16 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e- mailed statement.
The central bank will acquire $1 billion to $1.5 billion of Treasury Inflation Protected Securities maturing from January 2019 to February 2042. The purchases are part of the Fed’s program to replace short-term debt in its portfolio with longer- term Treasuries in an effort to keep borrowing costs low.
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