FED EXTENDS FOUR EMERGENCY LENDING PROGRAMS THROUGH MARCH

The Federal Reserve on Monday said it had extended through next March four backstop lending programs that helped to stabilize short-term funding markets when the coronavirus pandemic hit this past spring.

The extensions were widely expected and don't apply to any of the lending programs that the Treasury Department earlier this month said it would not renew.

Treasury Secretary Steven Mnuchin on Nov. 19 told Fed Chairman Jerome Powell that he would not grant extensions for five lending programs that have backstopped markets for corporate and municipal debt and to purchase loans made to small businesses and nonprofits when those programs expire on Dec. 31.

In the same letter, Mr. Mnuchin indicated that he would agree to extend four other programs, including the Paycheck Protection Program Liquidity Facility, which made it more attractive for small banks to fund PPP loans this past spring. The Fed agreed to extend that program on Monday.

 

Source: Market Screener