Federal Reserve Launches 3rd Emergency Lending Program

The Federal Reserve announced that it will establish an emergency lending facility to help unclog a short-term credit market that has been disrupted by the viral outbreak.
Federal Reserve Launches 3rd Emergency Lending Program
The seal of the Board of Governors of the U.S. Federal Reserve System lies embedded in the floor at the Marriner S. Eccles Federal Reserve Board Building in Washington on Feb. 5, 2018. Andrew Harnik/File via AP
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The Federal Reserve announced that it will establish an emergency lending facility to help unclog a short-term credit market that has been disrupted by the viral outbreak.

The Fed said late Wednesday that it will lend money to banks that purchase financial assets from money market mutual funds, including short-term IOUs known as commercial paper.