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Fed Continues ETF Buying, Signals Muni Lending Facility Imminent

Washington As White House Wants To Send Individual $1,000 Stimulus Checks Now
Photographer: Andrew Harrer/Bloomberg

The Federal Reserve’s weekly balance sheet update showed its holdings of exchange-traded funds continued to grow over the past week, while also signaling that a lending program for states and municipalities would soon be operational.

Fed holdings of ETFs invested in corporate debt rose to $2.98 billion as of May 26, according to the data released Thursday, up from $1.8 billion a week earlier. The ETF purchases, which began on May 12, are part of an emergency lending program designed to backstop large corporate borrowers amid the coronavirus pandemic.