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Writer's pictureTom Cochran

Federal Reserve Board's Municipal Liquidity Facility

Updated: Jun 18, 2020


Further to the issues involving the FRB’s Municipal Liquidity Facility on which I’ve commented previously, I’m attaching an excellent bipartisan letter (see below) calling on the Fed to use all of the powers granted under Section 4003 of the CARES Act to support the municipal bond market not only at the short end of yield curve but the mid- and long-range segments as well. Senators Menendez, Tillis, Brown and Murkowski point out that “…the municipal bond market has been under extraordinary stress. New bond issuances have declined drastically. Yields compared to U.S. Treasuries of comparable maturity have

skyrocketed. Investors in the secondary market have withdrawn their funds at record speed.



Bipartisan Letter for reference attached below:


Latest Pew Analysis of state/local fiscal crisis and MLF attached below:


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