Fed to try to ease flow of credit with new lending facility
Last updated 3/21/2020 at 3:32pm
AP Economics Writer
In its latest emergency action, the Federal Reserve is establishing a lending facility to try to ease the flow of short-term credit to banks and businesses as the economy grinds to a halt from the viral outbreak.
The Fed announced Tuesday, March 17, 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.
"An improved commercial paper market will e...