Emergency Federal Reserve actions don’t always repeat — but they certainly rhyme. Back in April I highlighted in this space that New York City was waiting in line during the pandemic to receive whatever assistance it might cajole from the Federal Reserve.
On Tuesday, Bloomberg reported that the Fed has agreed to purchase $451 million in notes floated by New York’s Metropolitan Transportation Authority, operator of the city’s subways and commuter trains, at an effective interest rate of 1.92%. Meanwhile Wall Street banks who need to weigh market risk had bid on these three year revenue anticipation instruments at a rate of 2.79%.
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