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Press Release
March 18, 2020

Federal Reserve Board broadens program of support for the flow of
credit to households and businesses by establishing a Money Market
Mutual Fund Liquidity Facility (MMLF)
For release at 11:30 p.m. EDT
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The Federal Reserve Board on Wednesday broadened its program of support for the flow of credit to
households and businesses by taking steps to enhance the liquidity and functioning of crucial money markets.
Through the establishment of a Money Market Mutual Fund Liquidity Facility, or MMLF, the Federal Reserve
Bank of Boston will make loans available to eligible financial institutions secured by high-quality assets
purchased by the financial institution from money market mutual funds.
Money market funds are common investment tools for families, businesses, and a range of companies. The
MMLF will assist money market funds in meeting demands for redemptions by households and other
investors, enhancing overall market functioning and credit provision to the broader economy.
The attached term sheet details the types of assets, including unsecured and secured commercial paper,
agency securities, and Treasury securities, that are eligible, as well as additional information. The MMLF
program will purchase a broader range of assets, but its structure is very similar to the Asset-Backed
Commercial Paper Money Market Mutual Fund Liquidity Facility, or AMLF, that operated from late 2008 to
early 2010. The MMLF is established by the Federal Reserve under the authority of Section 13(3) of the
Federal Reserve Act, with approval of the Treasury Secretary. The Department of the Treasury will provide
$10 billion of credit protection to the Federal Reserve in connection with the MMLF from the Treasury's
Exchange Stabilization Fund.
More detailed program terms and conditions and an operational calendar will be published soon.
For media inquiries, call 202-452-2955.

Term Sheet: Money Market Mutual Fund Liquidity Facility (PDF)
Updated term sheet: Money Market Mutual Fund Liquidity Facility

Related Information
Money Market Mutual Fund Liquidity Facility
Frequently Asked Questions
MMLF Request Form

Agreements and documents
ABCP MMMF Liquidity Facility

Last Update: April 07, 2020