Overview
Politico quoted Micah Green in an April 9 article titled "Fed to Buy Municipal Debt for First Time, Underscoring Peril Facing Cities." The article discusses how, for the first time, the Federal Reserve will directly buy bonds issued by states and cities in a move that highlights the danger faced by local governments as the fallout from the coronavirus pandemic slams their budgets.
"This is a significant move by the feds to enter the municipal market and in a pretty big way," says Green, former co-head of the Securities Industry and Financial Markets Association. Still, he adds, "There's much more to be seen as to what role, if any, they will play in the longer-term debt market, which would be an even further step of unprecedented activity by the Federal Reserve."
The full article can be read at Politico.
