Editing Federal Reserve (section)

==== Commercial Paper Funding Facility ====
On October 7, 2008, the Federal Reserve further expanded the collateral it would loan against to include commercial paper using the [[Commercial Paper Funding Facility]] (CPFF). The action made the Fed a crucial source of credit for non-financial businesses in addition to commercial banks and investment firms. Fed officials said they would buy as much of the debt as necessary to get the market functioning again. They refused to say how much that might be, but they noted that around $1.3 trillion worth of commercial paper would qualify. There was $1.61 trillion in outstanding commercial paper, seasonally adjusted, on the market {{As of|2008|October|1|lc=y}}, according to the most recent data from the Fed. That was down from $1.70 trillion in the previous week. Since the summer of 2007, the market had shrunk from more than $2.2 trillion.<ref>{{Cite web |title=Yahoo Finance – Stock Market Live, Quotes, Business & Finance News |url=https://finance.yahoo.com |archive-url=https://web.archive.org/web/20081216044105/http://biz.yahoo.com/ap/081007/financial_meltdown.html |archive-date=December 16, 2008 |website=finance.yahoo.com}}</ref><ref>{{Cite web |title=Yahoo Finance – Stock Market Live, Quotes, Business & Finance News |url=http://biz.yahoo.com/ap/081007/financial_meltdown.html |archive-url=https://web.archive.org/web/20151015224731/http://biz.yahoo.com/ap/081007/financial_meltdown.html |archive-date=October 15, 2015}}</ref> This program lent out a total $738 billion before it was closed. Forty-five out of 81 of the companies participating in this program were foreign firms. Research shows that [[Troubled Asset Relief Program]] (TARP) recipients were twice as likely to participate in the program than other commercial paper issuers who did not take advantage of the TARP bailout. The Fed incurred no losses from the CPFF.<ref>{{Cite SSRN |title=Does Receiving TARP Funds Make it Easier to Roll Your Commercial Paper Onto the Fed? |last=Wilson |first=Linus |last2=Wu |first2=Yan |date=August 22, 2011 |ssrn=1911454}}</ref>

In response to the economic disruptions caused by the COVID-19 pandemic, the Federal Reserve reintroduced the Commercial Paper Funding Facility (CPFF) on March 17, 2020, to support the flow of credit to households and businesses by purchasing eligible commercial paper.<ref>{{Cite news |title=Federal Reserve Board announces establishment of a Commercial Paper Funding Facility (CPFF) to support the flow of credit to households and businesses |url=https://www.federalreserve.gov/newsevents/pressreleases/monetary20200317a.htm |archive-url=http://web.archive.org/web/20250323074335/https://www.federalreserve.gov/newsevents/pressreleases/monetary20200317a.htm |archive-date=2025-03-23 |access-date=2025-04-20 |work=Board of Governors of the Federal Reserve System |language=en}}</ref> The CPFF was modeled after the 2008 crisis-era facility and aimed to stabilize the commercial paper market.<ref name="Commercial Paper Funding Facility">{{Cite news |title=Commercial Paper Funding Facility |url=https://www.federalreserve.gov/monetarypolicy/cpff.htm |archive-url=http://web.archive.org/web/20250410221418/https://www.federalreserve.gov/monetarypolicy/cpff.htm |archive-date=2025-04-10 |access-date=2025-04-20 |language=en}}</ref> The facility ceased operations on March 31, 2021, and is not in place as of April 2025.<ref name="Commercial Paper Funding Facility"/>