Fed funds, the U.S. overnight inter-bank lending rate, is projected to open at 0.09 to 0.11 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.28 percent yesterday after trading from 0.07 percent to 0.28 percent and averaging 0.1 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e-mailed statement.
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. the natural rate, and the inflation number is too low.”
The Federal Open Market Committee plans to release a statement at 2 p.m. after a two-day meeting in Washington, and Fed Chairman Ben S. Bernanke is scheduled to hold a press conference at 2:30 p.m. The central bank will also release FOMC participants’ forecasts for employment, growth, inflation and interest rates.
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