Federal Reserve Extends Asset Purchase Program to Municipal Bonds
Posted on 03/20/2020
The Federal Reserve moved to extend its asset purchase program into short-term municipal bonds. The Federal Reserve will act through the Money Market Mutual Fund Liquidity Facility (MMLF).
According to the press release, “The Federal Reserve Board on Friday expanded its program of support for the flow of credit to the economy by taking steps to enhance the liquidity and functioning of crucial state and municipal money markets. Through the Money Market Mutual Fund Liquidity Facility, or MMLF, the Federal Reserve Bank of Boston will now be able to make loans available to eligible financial institutions secured by certain high-quality assets purchased from single state and other tax-exempt municipal money market mutual funds.”
Keywords: Federal Reserve System.
