Boston Federal Reserve Bank President Eric Rosengren said there is little the U....
FILE PHOTO: The Federal Reserve Bank of Boston's President and CEO Eric S. Rosengren speaks in New York, April 17, 2013. REUTERS/Keith Bedford/File Photo
The Money Market Mutual Fund Liquidity Facility unveiled on Wednesday night is meant to boost confidence in money market funds and to prevent funds from having to sell assets in a “fire sale” to meet redemption requests, which could lower their value, Rosengren said in an interview with Reuters on Thursday.
The facility will make up to one-year loans to financial institutions that pledge as collateral high-quality assets, such as U.S. Treasury bonds, that they have purchased from money market mutual funds. The central bank slashed rates on Sunday to near zero and announced it will purchase at least $700 billion in Treasury securities and mortgage-backed securities to improve market functioning. The Fed has also revived or adjusted several programs used during the 2007-2009 financial crisis to boost liquidity, including launching a commercial paper funding facility and opening dollar swap lines with more central banks.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Fed to Relaunch Primary Dealer Credit FacilityThe central bank said it would relaunch a crisis-era facility that allows large financial institutions access to short-term loans.
Consulte Mais informação »
Wall Street jumps after Monday's historic sell-off as Fed boosts liquidity to fight coronavirus effectWall Street rebounded and the Dow surged more than 1000 points a day after stocks suffered their steepest decline since 1987
Consulte Mais informação »
U.S. Fed moves to ensure liquidity in money market mutual fundsThe U.S. Federal Reserve rolled out its third emergency credit program in two da...
Consulte Mais informação »
Stocks Continue Falling Despite ECB Stimulus And More Fed InterventionThis morning, the stock market has lost nearly all the gains it made since President Trump took office by theothersarahh
Consulte Mais informação »
U.S. recession chances now at 80% despite Fed emergency moves: Reuters pollThe coronavirus crisis has almost certainly ended the longest U.S. expansion on ...
Consulte Mais informação »