Wednesday night the Fed rolled out its 3rd emergency credit program in 2 days, announcing it would make loans to banks that offer as collateral assets purchased from money market mutual funds.
The new facility through the Boston Federal Reserve bank will offer “support for the flow of credit to households and businesses” by ensuring the $3.8-T money market mutual fund industry can sell its holdings of US Treasury bonds and other high quality assets at full value if investors ask to withdraw their cash.
Have a healthy day.
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