WASHINGTON May 9 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
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)