Experiential Wealth


Federal Reserve Press Release – FOMC Statement – Money Market Liquidity Facility

Mar 18, 2020 | Central Bank, FOMC, Individuals, Institutions

Summary

  • Established a Money Market Mutual Fund Liquidity Facility (MMLF) in support for the flow of credit to households and businesses by enhancing the liquidity and functioning of crucial money markets.
  • MMLF is expected to be extended through September 30, 2020.
  • MMLF intends to meet demands for redemptions by households and other investors, enhancing overall market functioning and credit provision to the broader economy.
  • Federal Reserve Bank of Boston (“Reserve Bank”) would lend to eligible borrowers, taking as collateral the following types of assets purchased by the borrower from Funds.
  1. U.S. Treasuries & Fully Guaranteed Agencies;
  2. Securities issued by U.S. Government Sponsored Entities;
  3. Asset-backed commercial paper that is issued by a U.S. issuer, is rated A1, F1, or P1 r better; or
  4. Unsecured commercial paper that is issued by a U.S. issuer, is rated not lower than A1, F1, or P1

Click here for the complete release.