Fed funds, the U.S. overnight inter- bank lending rate, is projected to open in a range of 0.15 percent to 0.18 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.15 percent yesterday after trading from 0.15 percent to 0.21 percent and averaging 0.17 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e- mailed statement.
The central bank will acquire $4.5 billion to $5.5 billion of Treasuries maturing from August 2020 to May 2022. The purchases are the first in the Fed’s new program to replace $400 billion of short-term debt in its portfolio with longer-term Treasuries in an effort to reduce borrowing costs further and counter rising risks of a recession.
To contact the reporter on this story: Liz Capo McCormick in New York at email@example.com
To contact the editor responsible for this story: Dave Liedtka at firstname.lastname@example.org