(Alliance News) - The US Federal Reserve on Monday said it has extended four lending facilities through to the end of March next year.
The extensions apply to the Commercial Paper Funding Facility, the Money Market Mutual Fund Liquidity Facility, the Primary Dealer Credit Facility, and the Paycheck Protection Program Liquidity Facility.
"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 a statement on Monday.
The extension has also been approved by the US Treasury Department, the central bank said.
Earlier in November, Mnuchin notified Fed Chair Jerome Powell that programmes targeting the corporate credit market, municipal lending and small and medium-enterprises through the Main Street Lending Program would not last beyond the end of 2020. He did however approve 90-day extensions for four programmes including those related to major financial institutions known as primary dealers, commercial paper, which finances things like auto loans and home mortgages, as well as the Paycheck Protection Program of loans and grants to small businesses.
The extension provides certainty that the facilities will continue to be available in the first quarter of 2021 to help the economy recover from the coronavirus crisis, the Fed said on Monday.
Top US scientist Anthony Fauci warned Sunday America should prepare for a "surge upon a surge" in coronavirus cases as millions of travelers return home after the Thanksgiving holiday.
The US is the world's worst-affected country, with 266,831 Covid-19 deaths, and President Donald Trump's administration has issued conflicting messages on mask-wearing, travel and the danger posed by the virus.
By Lucy Heming; lucyheming@alliancenews.com
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