Fed Announces Major Expansion of Market Intervention

Fed Announces Major Expansion of Market Intervention

The Federal Reserve announced a major expansion of lending programs that are designed to unclog credit markets that seized up last week, expanding its facilities to include certain types of corporate and municipal debt.

The rate-setting Federal Open Market Committee said the purchases of Treasury and mortgage securities that it approved one week ago are essentially unlimited, and the central bank said it would buy $375 billion in Treasury securities and $250 billion in mortgage securities this week

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