The Federal Reserve on Monday said it had extended four backstop lending programs that have helped to stabilize short-term funding markets after the coronavirus pandemic hit the United States.
The four programs include the Commercial Paper Funding Facility, the Money Market Mutual Fund Liquidity Facility, the Primary Dealer Credit Facility, and the Paycheck Protection Program Liquidity Facility. All had been set to expire by the end of 2020 and are now extended through March 31, 2021.
“By backstopping critical short-term funding markets, these facilities are supporting market functioning and enhancing the flow of credit to the economy,” the Fed said in an announcement released today.
The extension has also been approved by the U.S. Treasury Department, the central bank said.
The action was announced to “facilitate planning by potential facility participants and provide certainty that the facilities will continue to be available through the first quarter of 2021 to help the economy recover from the COVID-19 pandemic,” the Fed said.