The Federal Reserve established the Primary Market Corporate Credit Facility (PMCCF) on March 23, 2020, to support credit to employers through bond purchase and loan issuances. Specifically, the PMCCF will provide companies access to credit so that they are better able to maintain business operations and capacity during the period of dislocations related to the pandemic. Through this facility, the Federal Reserve will make loans and purchase bonds.

Please combine the bond supply and demand model, discuss the impact of this new Feds policy on the market interest rate. Provide clear arguments based on chapter 6 contents to support your view. You must also clearly show the impact in the graph featured by the demand and supply curve (as well as the direction of shift, if any).