WASHINGTON — Despite signs of strength in the credit markets, the Federal Reserve Board on Tuesday unveiled a new program to provide more liquidity to money market mutual funds.
If that sounds familiar, it should. It is the Fed's second attempt in a month to bolster money market funds. The first program targeted asset-backed commercial paper held by the funds. Now the central bank plans to tackle the unsecured commercial paper they hold. The Fed has a third program set to launch Monday that will purchase commercial paper — both secured and unsecured — from any U.S. issuer.