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

FILE PHOTO: The Federal Reserve building is pictured in Washington, DC, U.S., August 22, 2018. REUTERS/Chris Wattie/File Photo

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

The average or effective interest rate in the federal funds market was 1.85% on Monday, unchanged from Friday’s level, within the Fed’s current target range of 1.75%-2.00%, according to data from the New York Federal Reserve released on Tuesday.

Reporting by Gertrude Chavez-Dreyfuss; Editing by Angus MacSwan