The Fed enters the municipal bond market to lend cities a hand, but will it be enough?

March 26, 2020

By Michael Hendrix, includes “… As investor dollars rush out of the muni market, it is revealing troubling debts as well as questions about the role of fiscal federalism in a time of crisis. … With the Federal Reserve’s unprecedented backstop of the municipal bond market—and calls in Congress for the Fed to begin directly buying short- and long-term municipal bonds—the federal government is making a big bet on America’s states and localities.  …”

Read the full article on: Economics 21

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