It was once said of Joe DiMaggio, The Yankee Clipper, that he was so solitary and shy off the field that 'he led the league in room service.'

Well, the U.S. Federal Reserve 'leads the league in creating facilities.' The Fed Tuesday said it will help finance the purchase of assets from money-market mutual funds hurt by redemptions from investors fleeing to safer investments, such as U.S. government bonds.

Fed focuses on money market liquidity

The Fed has created a Money Market Investor Funding Facility (MMIFF), "which will support a private-sector initiative designed to provide liquidity to U.S. money market investors," the Fed announced Tuesday.

Eligible assets will include U.S. dollar-denominated certificates of deposit and commercial paper issued by highly rated financial institutions and having remaining maturities of 90 days or less, the Fed said. Eligible investors will include U.S. money market mutual funds and over time may include other U.S. money market investors.

JP Morgan Chase (NYSE: JPM) will administer the five special units that will buy certificates of deposit, bank notes, and commercial paper with a remaining maturity of 90 days or less, Bloomberg News reported Tuesday. The Fed will make up to $540 billion available for purchases.

Economist David H. Wang told BloggingStocks Tuesday this latest facility "should further increase liquidity."