Fed looking into more support for local govts – report
The United States Federal Reserve is looking into ways it can back state and local governments amid the coronavirus crisis, the Wall Street Journal reported on Friday, citing sources familiar with the matter.
The central bank is considering a municipal-lending program as state and local governments will likely be looking to increase borrowing as a result of lower revenues.
Earlier, Fed Chair Jerome Powell said the Fed still has many ways to help the economy. Meanwhile, the $2 trillion stimulus package that has been adopted in Congress foresees the Fed intervening directly in credit and fiscal policy by backing lending to firms, states and local governments.
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