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Federal Reserve creates new mechanism to ensure credit available
[WASHINGTON] Amid fears the American financial system will lock up, the Federal Reserve on Tuesday announced yet another mechanism to ensure credit will be available to US homes and businesses.
The credit facility will provide funding for up to 90 days to major financial institutions known as primary dealers, the Fed said.
"The facility will allow primary dealers to support smooth market functioning and facilitate the availability of credit to businesses and households," the central bank said in a statement.