Fed funds, the U.S. overnight inter- bank lending rate, is projected to open between 0.14 percent and 0.18 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.12 percent yesterday after trading from 0.07 percent to 0.17 percent and averaging 0.15 percent, according to ICAP Plc, the world’s largest inter-dealer broker.
The central bank will sell Treasury Inflation Protected Securities maturing from April 2014 to January 2016. The purchases are part of the Fed’s program to replace 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.
The central bank plans to sell from $750 million to $1.1 billion of securities today, according to the New York Fed’s website.
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