Bloomberg News

Fed Funds Open at 0.17%, Within Target Range, According to ICAP

November 05, 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 0.17 percent on Nov. 2 after trading from 0.1 percent to 0.28 percent and averaging 0.16 percent, according to ICAP Plc, the world’s largest inter-dealer broker.

The central bank will acquire Treasuries maturing from February 2036 to August 2042. 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 keep borrowing costs low.

The central bank plans to purchase from $1.75 billion to $2.25 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: David Liedtka at dliedtka@bloomberg.net


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