Journal Article

The Commercial Paper Funding Facility


Abstract: The Federal Reserve reestablished the Commercial Paper Funding Facility (CPFF 2020) in response to the disruptions in the commercial paper market triggered by the COVID-19 pandemic and subsequent economic shutdowns. The CPFF 2020 was designed to support market functioning and provide a liquidity backstop for the commercial paper market. This article provides an overview of the CPFF 2020, including detailing the facility’s design, documenting its usage, and describing its impact on commercial paper markets. In addition, the authors compare the market conditions and facility design in CPFF 2020 to that of the original CPFF facility.

Keywords: Federal Reserve; commercial paper market; CPFF; Commercial Paper Funding Facility; Federal Reserve lending facilities;

JEL Classification: G12; G18; G19;

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Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Economic Policy Review

Publication Date: 2022-07-01

Volume: 28

Issue: 1

Note: This volume is a special issue titled “Policy Actions in Response to the COVID-19 Pandemic,” and features ten articles by New York Fed economists and coauthors from Markets, Supervision, the Board of Governors, and the Boston Fed.