By Canadian Press

Fed will buy short-term loans to try to ease flow of credit

Mar 17, 2020 | 8:09 AM

WASHINGTON — The Federal Reserve says it will buy short-term loans from banks and companies to support the flow of credit as the economy grinds to a halt amid the viral outbreak. The Fed is reviving a program that it first used during the 2008 financial crisis to unclog a short-term lending market for what is known as “commercial paper.” Large businesses issue commercial paper to raise cash to meet payrolls and cover other short-term costs.

Christopher Rugaber, The Associated Press