Bloomberg News

Fed Funds Projected to Open at 0.16% to 0.18%, ICAP Says

November 30, 2012

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 0.27 percent and averaging 0.16 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e- mailed statement.

The central bank will acquire Treasuries maturing from February 2036 to November 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.

The Federal Reserve Bank of New York will also release its monthly schedule for its Treasury purchases and sales for December as part of the maturity extension program at 2 p.m. New York time.

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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