Fed funds, the U.S. overnight inter- bank lending rate, is projected to open at 0.14 percent to 0.18 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.12 percent on Sept. 28 after trading from 0.05 percent to 0.12 percent and averaging 0.07 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e- mailed statement.
The central bank will acquire Treasuries maturing from November 2020 to August 2022. The purchases are the part of the Fed’s program, which lasts through the end of the year, to replace $267 billion of short-term debt in its portfolio with longer-term Treasuries in an effort to reduce borrowing costs.
The central bank plans to purchase from $4.5 billion to $5.5 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 firstname.lastname@example.org
To contact the editor responsible for this story: Dave Liedtka at email@example.com