Federal Reserve Establishes Lending Facility To Back Up Money Market Mutual Funds

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In its latest move to cushion economic shock from the coronavirus, the Federal Reserve announced it would create a lending facility to help ease the flow of credit and meet demand for money market redemptions by households and businesses.

Federal Reserve Chairman Jerome Powell pauses during a news conference in Washington earlier this month. The Fed announced late Wednesday a new lending facility to back money market mutual funds battered by the coronavirus crisis.Federal Reserve Chairman Jerome Powell pauses during a news conference in Washington earlier this month. The Fed announced late Wednesday a new lending facility to back money market mutual funds battered by the coronavirus crisis.

The move is apparently aimed at ensuring that the nearly $4 trillion money market fund industry can weather sudden redemptions by investors amid a major correction on Wall Street and a sharp upsurge in layoffs caused by the coronavirus crisis. The announcement followed one earlier in the day meant to backstop the market for commercial paper — unsecured promissory notes issued by businesses to meet such short-term liabilities as payrolls, accounts payable and inventories. And on Sunday, the central bank lowered its benchmark federal funds rate to near zero and pledged to purchase $700 billion in Treasury securities and mortgage bonds.

 

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After all this is finally over, the USA will be completely BANKRUPTED! 🤨

Will people feel like idiots when they find out that coronavirus was actually no more deadly than the flu, because the death rate was hyper-inflated due to the fact that severely ill people are far more likely to be tested and diagnosed, than infected people with weak symptoms?

So they’re preparing for a run on the banks?

Credit? It means more debt!

Help humans before markets! 😡😡😡😡😡😡😡😡

Worried about Wall Street? Fxck Wall Street...what about US?

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