WASHINGTON — The Federal Reserve said late Wednesday night that it would offer emergency loans to money market mutual funds, its latest in a series of steps to keep the financial system functioning and prop up the economy as it spirals toward recession during the coronavirus pandemic.

The Fed said in a release that it would establish a so-called Money Market Mutual Fund Liquidity Facility, which would be backed by $10 billion from the Treasury Department. That program joins a similar lending one for banks, established this week.

The Fed is trying to protect the financial system and insulate the broader economy, for which short-term pain could turn into long-term suffering if credit crunches prevent companies from getting the cash they need to function, forcing them to lay off workers, delay payments to vendors and shutter plants.