Fed Funds Projected to Open at 0.21% to 0.23%, ICAP Says
Fed funds, the U.S. overnight inter- bank lending rate, is projected to open in a range of 0.21 percent to 0.23 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.3125 percent yesterday after trading from 0.125 percent to 0.3125 percent and averaging 0.17 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e- mailed statement. ICAP’s monthly average is 0.186 percent.
The central bank will acquire Treasury notes due from December 2014 to May 2016 today as part of its plan to purchase $600 billion more Treasuries through June and reinvest its maturing mortgage holdings. The Fed expects to reinvest $250 billion to $300 billion of proceeds from mortgage-backed debt and agency securities into Treasuries during that time.
The central bank plans to purchase between $6 and $8 billion securities today, according to the Federal Reserve Bank of New York’s website.
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