Bloomberg News

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

March 08, 2013

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 0.27 percent yesterday after trading from 0.12 percent to 0.27 percent and averaging 0.15 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e- mailed statement.

The central bank isn’t scheduled to buy any Treasuries under its asset-purchase plan known as quantitative easing.

No temporary open market operations, which add or drain reserves to the banking system, are expected, according to Wrightson ICAP, a research unit of ICAP specializing in U.S. government finance. The Fed has no Treasury purchases scheduled for today, which are permanent open market operations.

In repos, the Fed buys U.S. Treasury, mortgage-backed and agency debt from its primary dealers for a set period, temporarily raising the amount of money available in the banking system. At maturity, the securities are returned to the dealers, and the cash to the Fed. In reverse repos, temporary funds are drained from the system.

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


American Apparel's Future
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus