Bloomberg News

Fed Funds Opened at 0.17%, Within Target Range, ICAP Says

April 13, 2012

Fed funds, the U.S. overnight inter-bank lending rate, opened at 0.17 percent, within the Federal Reserve’s target of zero to 0.25 percent.

Fed funds closed at 0.10 percent yesterday after trading from 0.10 percent to 0.28 percent and averaging 0.15 percent, according to ICAP Plc, the world’s largest inter-dealer broker. ICAP’s monthly average is 0.138 percent.

The central bank will acquire Treasuries maturing from February 2036 to February 2042 as part of the Fed’s program to replace $400 billion of short-term debt in its portfolio with longer-term Treasuries to reduce borrowing costs further and counter rising risks of a recession.

The central bank plans to buy $1.5 billion to $2 billion of securities today, according to the New York Fed’s website.

To contact the reporter on this story: Liz Capo McCormick in New York at emccormick7@bloomberg.net

To contact the editor responsible for this story: Robert Burgess at bburgess@bloomberg.net


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