We study a one-dimensional lattice model of interacting spinless fermions. This model is integrable for both periodic and open boundary conditions; the latter case includes the presence of Grassmann valued non-diagonal boundary fields breaking the bulk U(1) symmetry of the model. Starting from the embedding of this model into a graded Yang-Baxter algebra, an infinite hierarchy of commuting transfer matrices is constructed by means of a fusion procedure. For certain values of the coupling constant related to anisotropies of the underlying vertex model taken at roots of unity, this hierarchy is shown to truncate giving a finite set of functional equations for the spectrum of the transfer matrices. For generic coupling constants, the spectral problem is formulated in terms of a functional (or TQ-)equation which can be solved by Bethe ansatz methods for periodic and diagonal open boundary conditions. Possible approaches for the solution of the model with generic non-diagonal boundary fields are discussed.