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Treasury Secretary Steven Mnuchin, shown testifying on Capitol Hill July 17, said the Federal Reserve has extended emergency lending to the end of the year. Photo by Kevin Dietsch/UPI

Treasury Secretary Steven Mnuchin, shown testifying on Capitol Hill July 17, said the Federal Reserve has extended emergency lending to the end of the year. Photo by Kevin Dietsch/UPI | License Photo
July 28 (UPI) — Treasury Secretary Steven Mnuchin said Tuesday the Federal Reserve approved a three-month extension of emergency lending under the Federal Reserve Act, allowing it to run until the end of this year.

The emergency lending period was supposed to run until Sept. 30 to help extend credit to small businesses. The central bank was pushed into numerous credit facilities after the markets froze because of fears over the coronavirus pandemic.

“The extraordinary Federal Reserve response to the COVID-19 pandemic, supported by Treasury’s equity capital, has played a vital role in improving liquidity and restoring market function,” Mnuchin said in a statement. “Through this extension, we will continue to support the flow of credit to American workers, businesses and municipalities.”

Mnuchin said the programs covered under the plan include facilities for primary dealers and money markets, corporate bond purchases on the primary and second markets and Main Street Lending Program.

The Term Asset-Backed Securities Loan facility and the Paycheck Protection Program Liquidity facility were also included.

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