Journal Article
The Money Market Mutual Fund Liquidity Facility
Anadu, Kenechukwu E.; Cipriani, Marco; Craver, Ryan M.; La Spada, Gabriele (2022-07-01)
In this article, the authors discuss the run on prime money market funds (MMFs) that occurred in March 2020, at the onset of the COVID-19 pandemic, and describe the Money Market Mutual Fund Liquidity Facility (MMLF), which the Federal Reserve established in response to it. They show that the MMLF, like a similarly structured Federal Reserve facility established during the 2008 financial crisis, was an important tool in stemming investor outflows from MMFs and restoring calm in short-term funding markets. The usage of the facility was higher by funds that suffered larger outflows. After the ...
Economic Policy Review , Volume 28 , Issue 1

Report
COVID Response: The Money Market Mutual Fund Facility
Anadu, Kenechukwu E.; Cipriani, Marco; Craver, Ryan M.; La Spada, Gabriele (2021-09-01)
In this article, we discuss the run on prime money market funds (MMFs) that occurred in March 2020, at the onset of the COVID-19 pandemic, and describe the Money Market Mutual Fund Liquidity Facility (MMLF), which the Federal Reserve established in response to it. We show that the MMLF, like a similarly structured Federal Reserve facility established during the 2008 financial crisis, was an important tool in stemming investor outflows from MMFs and restoring calm in short-term funding markets. The usage of the facility was higher by funds that suffered larger outflows. After the facility’s ...
Staff Reports , Paper 980