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 0.08 percent, within the Federal Reserve’s target of zero to 0.25 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e-mailed statement.
Fed funds traded from 0.05 percent to 0.32 percent yesterday, according to data posted on the Federal Reserve Bank of New York’s website. The fed effective, or a volume-weighted average of rates on trades arranged by major brokers, was 0.09 percent.
The central bank will acquire Treasuries $2 billion to $2.5 billion of Treasuries maturing from May 2021 to February 2024. 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 will also conduct a test of an overnight fixed-rate reverse repo facility. The temporary open-market operations will use Treasuries as collateral.