Fed says to make loans to aid money market funds

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Fed says to make loans to aid money market funds


WASHINGTON (Reuters) - The U.S. Federal Reserve on Friday announced more steps to aid battered markets, including opening its discount window to financial institutions to enable them to purchase certain assets from money market funds.

"One initiative will extend non-recourse loans at the primary credit rate to U.S. depositary institutions and bank holding companies to finance their purchases of high-quality asset-backed commercial paper (ABCP) from money market mutual funds," the Fed said in a statement.

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