May 12, 2020 / 1:16 AM / in 24 days

Federal Reserve will begin purchasing exchange-traded funds on Tuesday

NEW YORK, May 11 (Reuters) - The Federal Reserve will start purchasing shares of exchange-traded funds that invest in bonds on Tuesday through its Secondary Market Corporate Credit Facility, the central bank announced on Monday evening.

The facility is one of several tools recently created by the Fed to improve market functioning amid the coronavirus pandemic, which has led to substantial market volatility.

The Primary Market Corporate Credit Facility, which will purchase corporate bonds, will become operational in the "near future," the New York Fed said in a statement here (Reporting by Jonnelle Marte; editing by Diane Craft and Sandra Maler)

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