Fed funds, the U.S. overnight inter- bank lending rate, is projected to open in a range of 0.16 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 0.07 percent to 0.17 percent and averaging 0.16 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e- mailed statement.
The Federal Reserve Bank of New York will begin today a series of tri-party reverse repurchase agreements with all counterparties. The action, part of a series begun in 2009, doesn’t represent any change in monetary and is in preparation for the Fed’s eventual withdrawal of the central bank’s unprecedented monetary stimulus.
The central bank will also acquire Treasury notes due from February 2021 to November 2022 today as part of its plan to swap short- for long-term debt in its portfolio.
The central bank plans to purchase $4.25 billion to $5.25 billion of securities today, according to the Federal Reserve Bank of New York’s website.
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: David Liedtka at firstname.lastname@example.org