Fed announces MMLF facility to provide credit to households and businesses
|The US Federal Reserve has announced a Money Market Mutual Fund Liquidity Facility (MMLF) to facilitate lending to financial institutions secured by high quality assets purchased by those institutions from money market mutual funds.
The MMLF includes $10 billion worth of credit protection from the US Treasury exchange stabilization fund and is expected to help meet demands for redemptions by households and other investors to enhance credit provision throughout the economy.
"The MMLF program will purchase a broader range of assets, but its structure is very similar to the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility, or AMLF, that operated from late 2008 to early 2010," according to the Fed.
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