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Fed will buy short-term loans to try to ease flow of credit

CHRISTOPHER RUGABER AP Economics Writer
Created: March 17, 2020 10:10 AM

WASHINGTON (AP) - The Federal Reserve says it will buy short-term loans from banks and companies to support the flow of credit as the economy grinds to a halt amid the viral outbreak.

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The Fed is reviving a program that it first used during the 2008 financial crisis to unclog a short-term lending market for what is known as “commercial paper.”

Large businesses issue commercial paper to raise cash to meet payrolls and cover other short-term costs.

Credits

CHRISTOPHER RUGABER AP Economics Writer

Copyright 2020 The Associated Press. All rights reserved.

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