Fed Expands Muni-Debt Program to Cover Smaller Cities, Counties
- Program adds multi-state issuers, ‘fallen angel’ provision
- Federal Reserve’s new term sheet offers no new pricing details
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The Federal Reserve expanded the scope and duration of the Municipal Liquidity Facility, a $500 billion emergency lending program for state and local governments enduring the economic fallout from the coronavirus pandemic.
The U.S. central bank lowered the population thresholds under which counties and cities would be eligible to sell short-term debt to the facility. The new levels were at least 500,000 for counties and 250,000 for cities, down from 2 million and 1 million.