Federal Reserve to shore up prime money market funds amid Wall Street rout

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The new Money Market Mutual Liquidity Fund will provide loans to financial institutions to buy assets from prime money market funds.

Concern had risen in recent days about the prime funds, which purchase non-Treasury debt, such as corporate debt, commercial paper and government agency debt.

US Federal Reserve Chair Jerome Powell speaks at a "Fed Listens" event in Washington, DC, on October 4, 2019.The Federal Reserve took another page out of its 2008 crisis-era playbook late Wednesday evening, invoking its emergency authority to create a backstop for prime money market mutual funds. Concern had risen in recent days about the prime funds, which purchase non-Treasury debt, such as corporate debt, commercial paper and government agency debt. They had seen outflows as large corporate and institutional depositors sought to raise cash amid the financial turmoil stemming from the coronavirus.It was the second program in two days to use a $10 billion backstop from the Treasury Department's Exchange Stabilization Fund.

The move was another sign of turmoil inside the financial system created by the coronavirus, and it remained unclear if the constant barrage of programs from the Fed and the Treasury would be enough to restore order.

 

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Investors are leaving MMF because the fees take the to near zero

The Virus is the key to all issues. Watching this shit show makes us all realize how out of touch you wealthy fools are. Money does not solve all problems.

YES! Thank you federalreserve Lessons learned from 2008 finally having to be used.

You can’t ‘policy’ your way out of a pandemic. TrumpPandemic

Stunning. US futures down another 5%. Exhausting.

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