Federal Reserve

Fed to reinstate commercial paper funding facility, sources say

Key Points
  • The Federal Reserve is planning to reinstate a facility previously used during the 2007-09 financial crisis to improve liquidity in a key short-term funding market, two sources familiar with the matter told Reuters.
  • An announcement about a reintroduction of the Commercial Paper Funding Facility (CPFF) could be made as early as Tuesday, the sources said.
Federal Reserve Chairman Jerome Powell testifies during a House Financial Services Committee hearing on "Monetary Policy and the State of the Economy" in Washington, July 10, 2019.
Erin Scott | Reuters

The Federal Reserve is planning to reinstate a facility previously used during the 2007-09 financial crisis to improve liquidity in a key short-term funding market, two sources familiar with the matter told Reuters.

An announcement about a reintroduction of the Commercial Paper Funding Facility (CPFF) could be made as early as Tuesday, the sources said.