23 March 2020 – Established new credit and market liquidity facilities

This item is sourced from COVID-19 Policy Watch co-ordinated by Policy. We are in the process of gathering further information and aligning taxonomies for these items.

Intervention Categories: Finance policy and financial aid; Monetary and macro-financial policy
Level of Jurisdiction: Federal

Overview: The Federal Reserve established new credit facilities to support credit markets across the economy. To support large employers, the Federal Reserve established the Primary Market Corporate Credit Facility (PMCCF), for new bond and loan issuance, and the Secondary Market Corporate Credit Facility (SMCCF), for liquidity for outstanding corporate bonds.

To support the flow of credit to households and businesses, the Federal Reserve established the Term Asset-Backed Securities Loan Facility (TALF), for issuance of asset-backed securities (ABS) backed by student loans, auto loans, credit card loans, and other loans.

To support municipalities, the Money Market Mutual Fund Liquidity Facility (MMLF) is being expanded to include a wider range of securities, and the Commercial Paper Funding Facility (CPFF) is being expanded to include high-quality, tax-exempt commercial paper as eligible securities.
Full details here: https://www.federalreserve.gov/newsevents/pressreleases/monetary20200323b.htm