Economics

Fed’s Lending Lifeline Leaves Black-Majority Cities on Their Own

  • Brookings analysts say population limits ‘deepen’ racial gulf
  • Seen as unintended consequence of first step into the market

A pedestrian walks through an empty downtown Detroit, Michigan, on April 4.

Photographer: Emily Elconin /Bloomberg
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The Federal Reserve’s decision to extend loans only to the most-populous local governments may have a stark, if unintended consequence: excluding some of the cities and counties with the biggest share of black residents.