The Federal Reserve Board continues its streak of rolling out new crisis-preventing measures each week, as the Fed invoked its emergency powers Tuesday morning to begin buying assets from money market mutual funds that are having difficulty meeting redemptions from their investors.
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The new program, dubbed the Money Market Investor Funding Facility,
will purchase certificates of deposit, bank notes and commercial paper
with a remaining maturity of 90 days or less from mutual funds. The
facility will buy the assets through private special-purpose vehicles
that will lend to the facilities on an overnight basis at the
discount rate, which currently stands at 1.75%. -
George White
See Federal Reserve statement
