Fed buys commercial paper from money-market funds

The Federal Reserve announced on Tuesday that it will start buying commercial paper from money-market mutual funds.

The Fed will create a new facility - called the Money Market Investor Funding Facility - to buy commercial paper from money-market mutual funds that have come under pressure as nervous investors have rushed into early redemptions.

"The short-term debt markets have been under considerable strain in recent weeks as money-market mutual funds and other investors have had difficulty