WASHINGTON (Reuters) - The Federal Reserve said on Friday that it plans to conduct another series of eight operations offering seven-day term deposits through its Term Deposit Facility (TDF).
The Fed said that during the first four operations, the maximum award will be gradually raised to a level not to exceed $10 billion, with an interest rate of 26 basis points.
The U.S. central bank proposed creating a TDF after the 2008 financial crisis to help the Fed's policy-makers withdraw money from the banking system when they decide to tighten monetary policy.
Over the subsequent four operations the Fed expects to increase the interest incrementally not to exceed 30 basis points, it said on Friday.
Operations will be held on the first business day of each week starting during the week of May 19.
Reporting by Michael Flaherty; Editing by Chizu Nomiyama