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.