What is the relationship between the CPFF and the MMIFF?
The MMIFF complements the CPFF. The CPFF will finance an SPV’s purchase of three-month commercial paper from issuers at interest rates chosen to be above market rates in more normal times, assuring participating issuers that they need pay no more than the CPFF rates to roll over their commercial paper. The MMIFF will tend to pull down short-term debt rates by relieving some of the balance sheet pressures on money market investors. Both the MMIFF and the CPFF are intended to improve liquidity in short-term debt markets and thereby increase the availability of credit for businesses and households.
