Federal Reserve to shore up prime money market funds amid Wall Street rout

US Federal Reserve Chair Jerome Powell speaks at a “Fed Listens” event in Washington, DC, on October 4, 2019.

Eric Baradat | AFP | Getty Images

The Federal Reserve took another page out of its 2008 crisis-era playbook late Wednesday evening, invoking its emergency authority to create a backstop for prime money market mutual funds.

The new Money Market Mutual Liquidity Fund will provide…

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