WASHINGTON (Reuters) - The U.S. Federal Reserve on Tuesday launched a new facility to fund purchases of certificates of deposit and commercial paper from money market mutual funds in the latest step to provide liquidity to strained financial markets.
"By facilitating the sales of money market instruments in the secondary market, the MMIFF (Money Market Investor Funding Facility) should improve the liquidity position of money market investors, thus increasing their ability to meet any further redemption requests and their willingness to invest in money market instruments," the Fed said in a statement.
(Reporting by Mark Felsenthal; Editing by Andrea Ricci)
