October 17, 2019 / 1:48 PM / a month ago

U.S. effective fed funds rate steady, below Fed's target range

FILE PHOTO: Federal Reserve Board building on Constitution Avenue is pictured in Washington, U.S., March 19, 2019. REUTERS/Leah Millis/File Photo

NEW YORK (Reuters) - The average interest rate banks charge each other to borrow reserves overnight was steady on Wednesday, still below the Federal Reserve’s target range, as the U.S. central bank injected billions of cash into the banking system to prevent a liquidity crunch.

The average or effective interest rate in the federal funds market was 1.90% on Wednesday, unchanged from Tuesday’s level, well within the Fed’s current target range of 1.75%-2.00%, according to data from the New York Federal Reserve released on Thursday.

Reporting by Gertrude Chavez-Dreyfuss; Editing by Toby Chopra

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