Bloomberg News

Fed Funds Projected to Open at 0.16% to 0.17%, ICAP Says

January 14, 2013

Fed funds, the U.S. overnight inter- bank lending rate, is projected to open at 0.15 percent to 0.17 percent, within the Federal Reserve’s target of zero to 0.25 percent.

Fed funds closed at 0.12 percent on Jan. 11 after trading from 0.05 percent to 0.16 percent and averaging 0.12 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 quantitative easing program aimed at keeping long-term rates low.

The central bank plans to purchase from $1.25 billion to $1.75 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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