Bernanke Delaying Taper Slows Worst Fund Withdrawal: Muni Credit
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Credit Federal Reserve Chairman Ben S. Bernanke with putting the brakes on the biggest stampede out of municipal mutual funds since 2011.
As the $3.7 trillion local-debt market logs its best rally in 21 months, individuals are yanking the least money in six weeks from funds focusing on city and state debt. The slowdown in withdrawals follows Bernanke’s unexpected decision last week to refrain from curbing the Fed’s monthly bond buying.