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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



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