WASHINGTON — The Federal Reserve said late Wednesday night that it would offer emergency loans to money market mutual funds, its latest in a series of steps to keep the financial system functioning and prop up the economy as it spirals toward recession during the coronavirus pandemic. The Fed said in a release that it would establish a so-called Money Market Mutual Fund Liquidity Facility, which would be backed by $10 billion from the Treasury Department. That program joins a similar lending one for banks, established this week. Companies and investors are already seeing the chilling effects on economic activity from the virus, as well as from the government mandates that have tried to slow its spread. Sectors like tourism, travel, retail and dining have shut down or slowed significantly in large patches of the country, forcing Congress and the Trump administration to contemplate aid to workers and bailouts for businesses on an unprecedented scale.

Source: New York Times March 19, 2020 03:31 UTC