Fed Takes Drastic Step To Unfreeze Credit Market
ARI SHAPIRO, host:
NPR's business news starts with another new fix from the Fed.
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SHAPIRO: The Federal Reserve has announced a new emergency plan to channel money to businesses that need cash to pay their bills. This morning, the Fed said it will start buying commercial paper. That's a kind of short-term bond that companies issue to fund their daily operations. The Fed says it's become harder for companies to raise money using commercial paper, so it's stepping in to prevent what it calls substantial disruption to financial markets and the economy.
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