The Federal Reserve is stepping into the commercial paper market with a $10 billion funding from the US Treasury to avert a cash crunch from the coronavirus that could threaten day-to-day funding for businesses, Treasury Secretary Steve Mnuchin said on Tuesday
WASHINGTON (Pakistan Point News / Sputnik - 17th March, 2020) The Federal Reserve is stepping into the commercial paper market with a $10 billion funding from the US Treasury to avert a cash crunch from the coronavirus that could threaten day-to-day funding for businesses, Treasury Secretary Steve Mnuchin said on Tuesday.
"I have just sent Chairman Jerome Powell a letter confirming that I approve the establishment of the CPFF to provide liquidity to the financial system pursuant to Section 13(3) of the Federal Reserve Act and the Board's Regulation A," Mnuchin said in a statement, referring to the letter sent to the Fed Chair Powell on the Commercial Paper Funding Facility established by the central bank. The Fed said in a separate statement that the Treasury will provide $10 billion of credit protection to the CPFF.
