Fed Announces $2.3 Trillion in Lending. Will It Save The Mortgage Market?
Posted To: MBS Commentary
The Fed announced new lending programs totaling $2.3 trillion this morning. The Fed had recently alluded to "additional tools" at its disposal to support the economy even after it had announced the latest round of Treasury/MBS purchases on March 15th. An announcement on March 23rd unveiled (or reintroduced) several of these tools. Today's announcement merely expands their scope. What are the tools in today's announcement? MMLF – Money Market Mutual Fund Liquidity Facility, which helps mutual funds meet demand for cash withdrawals ( read more ) MSLF/MSELF – Main Street (Expanded) Loan Facility, which helps "small" businesses keep the doors open PPPLF – Paycheck Protection Program Liquidity Facility, which helps banks continue participating in the PPP offered through…(read more)