Fed takes step to aid municipal bond liquidity, faces calls to do more
By Polo Rocha
The Federal Reserve took a step March 20 to help ease liquidity pressures in short-term municipal money markets, but it is facing calls to take broader action to alleviate strains on state and local government budgets. …The Fed’s addition of shorter-term municipal debt to its money market mutual fund liquidity facility “won’t be enough” to provide a buffer to state and local budgets, wrote Karen Petrou, managing partner at Federal Financial Analytics, a firm that advises companies on financial services issues. “Another urgent window must open for municipal finance — huge strains in state and local finance are showing and these will only get worse as the pandemic’s cost skyrockets,” she wrote in a March 20 note to clients.
https://www.spglobal.com/marketintelligence/en/news-insights/blog/part-two-ifrs-9-blog-series-time-is-running-out-for-insurance-companies-to-comply
