US Treasury Sec. Mnuchin: CPFF to provide short-term credit to help businesses

Commenting on the Federal Reserve's decision to reintroduce the Commercial Paper Funding Facility (CPFF), US Treasury Secretary Mnuchin said that the CPFF will provide short-term credit to help American businesses manage finances amid coronavirus outbreak.

"The Treasury will provide $10 billion of capital to commercial paper facility from exchange stabilization fund," Mnuchin explained. "The Federal Reserve Bank of New York would charge rates and fees to eligible issuers based on collateral and other guarantees."

Market reaction

Markets continue to cheer this announcement with Wall Street's major indexes pushing higher in the session. As of writing, the S&P 500 and the Nasdaq Composite were up 2.9% and 3.1%, respectively, on a daily basis.