Fed extends four emergency liquidity programs through March 31, 2021

The US Federal Reserve announced on Monday that it has extended liquidity facilities for commercial paper, money markets, primary dealers and paycheck protection program through March 31, 2021.

The Fed noted these programs are separate from credit facilities that the US Treasury has recently ordered closed on December 31.

"Liquidity facilities are continuing to support market functioning and enhancing credit," the Fed said. "The extension of these programs was approved by the US Treasury and will help market planning through the first quarter of 2021 to aid recovery from the pandemic."

Market reaction

The US Dollar Index showed no immediate reaction to this announcement and was last seen losing 0.2% on the day at 91.60.