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The Treasury Department is seeking authority from Congress to temporarily backstop money markets amid intense strains in the financial sector—as part of a broader fiscal package to bolster the economy due to the new coronavirus pandemic.
In a memo outlining the administration’s proposal, Treasury said it is asking lawmakers to temporarily suspend restrictions on its Exchange Stabilization Fund so it can develop guarantee programs for the money-market mutual fund industry.
The program would last until the White House terminates the national state of emergency President Trump declared on March 13, 2020, according to the memo viewed by The Wall Street Journal.
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