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Board of Governors of the Federal Reserve System
The Federal Reserve, the central bank of the United States, provides the nation with a
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Press Release
September 19, 2008

Federal Reserve Board announces two
enhancements to its programs to provide
liquidity to markets
For release at 8:30 a.m. EDT
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The Federal Reserve Board on Friday announced two enhancements to
its programs to provide liquidity to markets. One initiative will extend
non-recourse loans at the primary credit rate to U.S. depository
institutions and bank holding companies to finance their purchases of
high-quality asset-backed commercial paper (ABCP) from money market
mutual funds. This should assist money funds that hold such paper in
meeting demands for redemptions by investors and foster liquidity in the
ABCP markets and broader money markets.
To further support market functioning, the Federal Reserve also plans to
purchase from primary dealers federal agency discount notes, which are
short-term debt obligations issued by Fannie Mae, Freddie Mac, and the
Federal Home Loan Banks.
Asset-Backed Commercial Paper (ABCP) Money Market Mutual Fund
(MMMF) Liquidity Facility (AMLF)
Statement regarding planned purchases of agency debt

Last Update: September 22, 2008

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BOARD OF GOVERNORS of the FEDERAL RESERVE SYSTEM
20th Street and Constitution Avenue N.W., Washington, DC 20551