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Fed Starts Emergency Program to Aid Money Market Funds

  • Late night announcement comes amid strain in credit market
  • Investors seek safe havens, bracing for virus to slam economy
Federal Reserve Board Holds Open Meeting
Photographer: Andrew Harrer/Bloomberg
Updated on

The Federal Reserve late Wednesday said it was launching a program to support money market mutual funds as alarm over the coronavirus continues to cause strains in short-term funding markets.

The Money Market Mutual Fund Liquidity Facility, established under the Fed’s emergency authority, echoes a version that was set up during the global financial crisis. The Treasury Department will provide $10 billion of credit protection.