The Federal Reserve announced today the extension through October 30, 2009, of its existing liquidity programs that were scheduled to expire on April 30, 2009.
Among the programs extended through October are the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF), the Commercial Paper Funding Facility (CPFF), the Money Market Investor Funding Facility (MMIFF), the Primary Dealer Credit Facility (PDCF), and the Term Securities Lending Facility (TSLF). The expiration of the Fed’s Term Asset-Backed Securities Loan Facility (TALF) remains December 31, 2009. Certain other Fed programs, such as the Term Auction Facility (TAF), do not have a fixed expiration date.
In addition to these extensions, the Fed also announced the extension through October 2009 of the temporary reciprocal currency arrangements (swap lines) between the Federal Reserve and other central banks.
The Fed acknowledged taking these actions due to “continuing substantial strains in many financial markets.” The timelines appear to reflect the belief held by many in the financial services industry that the liquidity and credit problems facing the industry will likely not be resolved before much later this year.