Fed funds, the U.S. overnight inter-bank lending rate, opened at 0.15 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.28 percent yesterday after trading from 0.11 percent to 0.28 percent and averaging 0.13 percent, according to ICAP Plc, the world’s largest inter-dealer broker. ICAP’s monthly average is 0.114 percent.
The central bank will acquire Treasuries maturing from March 2018 to February 2020 today. The purchases are part of the Fed’s program to replace $400 billion of short-term debt in its portfolio with longer-term Treasuries to limit borrowing costs and counter risks of a recession.
The central bank plans to purchase from $3.5 billion to $4.25 billion of securities today, according to the New York Fed’s website.
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