Fed announces the establishment of a Commercial Paper Funding Facility (CPFF) "to support the flow of credit to households and businesses".

• CPFF will provide liquidity backstop to U.S. issuers of commercial paper
• CPFF program is established by Fed under the authority of Section 13(3) of the Federal Reserve Act, with approval of U.S. Treasury Secretary
• U.S. Treasury will provide $10 billion of credit protection to Fed in connection with CPFF
• Pricing will be based on the then-current 3-month overnight index swap (OIS) rate plus 200 basis points
• Fed notes that commercial paper market has been under considerable strain in recent days as businesses and households face greater uncertainty in light of the coronavirus outbreak