NEW YORK (Pakistan Point News / Sputnik - 16th June, 2020) � The Federal Reserve announced on Monday an update to its market liquidity and credit program for large employers after the US stock market suffered its worst weekly decline in three months last week.
"The Secondary Market Corporate Credit Facility (SMCCF) ... will begin buying a broad and diversified portfolio of corporate bonds to support market liquidity and the availability of credit for large employers," the Fed said in a statement, announcing the move after Wall Street's leading Dow Jones Industrial Average index lost almost 6 percent last week for its biggest weekly loss since mid-March.
The SMCCF, created in mid-May, is one of the Fed's recently-devised tools meant to improve market functioning in the wake of the coronavirus pandemic, which has seen a spike in market volatility.
The Dow's decline last week was sparked by fears of a new spike in COVID-19 cases in the United States, after the initial outbreak from February appeared to be coming under control.
