Wall Street gains as Fed moves to buy short-term corporate debt

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NEW YORK: U.S. stocks reversed early losses to trade higher on Tuesday as the Federal Reserve said it would relaunch financial crisis-era purchases of short-term corporate debt to thaw credit markets strained by the coronavirus pandemic.

Under the Commercial Paper Funding Facility (CPFF), first used in 2008, the central bank will buy short-term corporate debt directly from the companies that issue it.