Fed Unveils Major Expansion of Market Intervention

Source: Wall Street Journal

The Federal Reserve unveiled a major expansion of lending programs Monday that are designed to keep credit markets functioning after they seized up last week, expanding its facilities to include certain types of corporate and municipal debt, according to a Wall Street Journal report.

The Fed said the purchases of Treasury and mortgage securities that it approved one week ago are essentially unlimited, and it said it would buy $375 billion in Treasury securities and $250 billion in mortgage securities this week.

The central bank also said it would begin purchasing commercial mortgage-backed securities issued by government-supported entities, which primarily consist of debt on apartment buildings.

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