WASHINGTON (Reuters) – Turmoil in money market mutual funds sparked by the coronavirus pandemic in March shows that decade-old reforms to the industry may not be sufficient to avert major outflows during a future crisis, Deputy U.S. Secretary Justin Muzinich said on Tuesday.
Muzinich said in remarks to a New York Federal Reserve conference that the Money Market Mutual Fund Liquidity Facility created in March was critical to restoring financial market functioning as broad shutdowns of the U.S. economy got underway, but high demand for fund withdrawals was due to different metrics than those during the 2008 financial crisis.
Reporting by David Lawder
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