Fed Funds Open at 0.08%, Within Target Range, According to ICAPLiz Capo McCormick
Fed funds, the U.S. overnight inter-bank lending rate, opened at 0.08 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.1 percent yesterday after trading from 0.04 percent to 0.25 percent and averaging 0.08 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e-mailed statement.
The central bank will conduct two operations as part of its purchases of government debt. It will acquire $1.25 billion to $1.75 billion of Treasuries maturing from February 2036 to November 2043. At about 1:15 p.m., it will purchase $4.75 billion to $5.75 billion Treasuries maturing from September 2018 to August 2019. 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.