Bloomberg News

Fed Funds Open at 0.15%, Within Target Range, According to ICAP

August 06, 2012

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 0.10 percent on Aug. 3 after trading from 0.1 percent to 0.15 percent and averaging 0.133 percent, according to ICAP Plc, the world’s largest inter-dealer broker.

The central bank will buy $4.5 billion to $5.5 billion of Treasuries maturing from August 220 to May 2022. The purchases are part of the Fed’s program to replace $267 billion of short- term debt in its portfolio with longer-term Treasuries in an effort to keep borrowing costs low.

The Federal Reserve Bank of New York may also conduct ”small-value” repurchase agreements with its primary dealers as part of its “operational readiness program.” The operations don’t represent any change in Fed monetary policy and are part of the central bank’s efforts to test its readiness to conduct temporary open market operations in the future.

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net


Tim Cook's Reboot
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus