Fed to try to ease flow of credit with new lending facility

CHRISTOPHER RUGABER AP Economics Writer WASHINGTON (AP) — In its latest emergency action, the Federal Reserve is establishing a lending facility to try to ease the flow of short-term credit to banks and businesses as the economy grinds to a halt from the viral outbreak. The Fed announced Tuesday that it's reviving a program it first used during the 2008 financial crisis to unclog a short-term lending market for what is known as "commercial paper." Large businesses issue commercial paper to raise cash to meet payrolls and cover other short-term costs. "An improved commercial paper market will enhance the ability of businesses to maintain employment and investment as the nation deals with the coronavirus outbreak," the Fed said in a statement. Borrowing rates in the commercial paper