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

area District Of Columbia Washington, area District Of Columbia outbreak
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WASHINGTON, D.C. – In its latest emergency action, the Federal Reserve is establishing a lending facility to buy short-term loans from banks and companies to ease the flow of credit as the economy grinds to a halt from the viral outbreak.

The Fed announced Tuesday that it's reviving a program 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.

Borrowing rates in the commercial paper market have been spiking as more companies have sought to raise cash in the expectation that their revenue will plunge.

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India
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Brazil
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Russia
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Deaths: 237 619
Recovered: 0
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