MNI: Text - Fed Announces A Primary Dealer Credit Facility

     WASHINGTON (MNI) - The Federal Reserve released the following statement

announcing a Primary Dealer Credit Facility: 

     To support the credit needs of American households and businesses, the

Federal Reserve Board on Tuesday announced that it will establish a Primary

Dealer Credit Facility, or PDCF. The facility will allow primary dealers to

support smooth market functioning and facilitate the availability of credit to

businesses and households.

     The PDCF will offer overnight and term funding with maturities up to 90

days and will be available on March 20, 2020. It will be in place for at least

six months and may be extended as conditions warrant. Credit extended to primary

dealers under this facility may be collateralized by a broad range of investment

grade debt securities, including commercial paper and municipal bonds, and a

broad range of equity securities. The interest rate charged will be the primary

credit rate, or discount rate, at the Federal Reserve Bank of New York. 

     More detailed terms and conditions and an operational calendar will be

subsequently released. The PDCF is established under Section 13(3) of the

Federal Reserve Act, with approval of the Treasury Secretary.

--MNI Washington Bureau; +1 202 371 2121; email: evan.ryser@marketnews.com

[TOPICS: MMUFE$,M$U$$$]