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The Fed Is Ducking Its Responsibilities To Main Street

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Marriner S. Eccles Federal Reserve Board Building.
Marriner S. Eccles Federal Reserve Board Building.
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When Wall Street needs help, the Fed always brings the cavalry. So why has the central bank abandoned state and local governments?

Anyone still expecting the Federal Reserve to rescue states and cities, don't.  They were given that mandate by Congress months ago, but have raised interest rates in their half trillion dollar program so high that only Illinois and NY's MTA have been desperate enough to borrow from it, a small fraction of what's available.

The Fed could loan at near zero rates for loans that last decades if it chose to.  They've certainly shown that level of creativity for corporations and banks, and then some, for years if not decades.

The states and cities should redirect much or most of their trillions in deposits (see the Comprehensive Annual Financial Reports) to public banks, for their own local communities, and do it pronto.

Read the rest of the story HERE:

At www.huffpost.com
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Scott Baker is a Managing Editor & The Economics Editor at Opednews, and a former blogger for Huffington Post, Daily Kos, and Global Economic Intersection.

His anthology of updated Opednews articles "America is Not Broke" was published by Tayen Lane Publishing (March, 2015) and may be found here:
http://www.americaisnotbroke.net/

Scott is a former and current President of Common Ground-NY (http://commongroundnyc.org/), a Geoist/Georgist activist group. He has written dozens of (more...)
 

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