Bloomberg News

Fed Funds Open at 0.17%, Within Fed’s Target Range, ICAP Says

December 10, 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 0.27 percent on Dec. 7 after trading from 0.1 percent to 0.27 percent and averaging 0.17 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 the part of the Fed’s program, which lasts through the end of the year, to replace short-term debt in its portfolio with longer-term Treasuries in an effort to reduce borrowing costs.

The central bank plans to purchase from $1.5 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: Dave Liedtka at dliedtka@bloomberg.net


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