Fed Funds Opened at 0.1%, Within Target Range, According to ICAPLiz Capo McCormick
Fed funds, the U.S. overnight inter-bank lending rate, opened at 0.1 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.05 percent yesterday after trading from 0.04 percent to 0.25 percent and averaging 0.07 percent, according to ICAP Plc, the world’s largest inter-dealer broker.
The central bank will acquire Treasuries $1.25 billion to $1.75 billion of Treasuries maturing from February 2036 to August 2043. The purchases, which are permanent open market operations, are the part of the Fed’s quantitative easing program aimed at keeping long-term rates low.
The Fed may also conduct a test of an overnight fixed-rate reverse repo facility. The temporary open-market operations will use Treasuries as collateral.