Fed’s Municipal Liquidity Facility Misses the Mark
While today’s action helps the largest cities, it completely misses the mark for those cities, towns, and counties across our country that fall under the population minimums
WASHINGTON – The American Securities Association (ASA) today urged policymakers to focus their efforts on helping Main Street after the Federal Reserve announced the creation of a Municipal Liquidity Facility that is limited to “U.S. counties with a population of at least two million residents, and U.S. cities with a population of at least one million residents.”
“While today’s action helps the largest cities, it completely misses the mark for those cities, towns, and counties across our country that fall under the population minimums,” said ASA CEO Chris Iacovella. “These areas represent the heartbeat of America and for some reason the Fed and Treasury have chosen to exclude them while backstopping the largest cities, which doesn’t make any sense. We expect Members of Congress on both sides of the aisle who represent these Main Street districts to work together and join us to remedy this situation immediately.”
Last week, ASA sent a letter to Fed Chair Powell urging the Board to use its authority to authorize a “Main Street” non-primary dealer credit facility to expand credit for the thousands of issuers in states, towns, and municipalities across the country. To read that letter, click here.
ASA’s regional financial services companies work in communities across the country to create jobs, grow the economy, and increase prosperity for all Americans. The ASA exclusively represents the capital market and private client interests of its members and seeks to promote free market principles making it easier to access financial advice and capital. ASA members help Americans save for retirement, provide Main Street businesses with capital to grow, and advise hardworking Americans how to create and preserve wealth. For the latest updates follow @AmerSecurities and learn more at http://americansecurities.org/.