Just days after President Trump's four Executive Orders providing relief to Americans - and snubbing demands by Democrats and Governors for state bailouts - some might suggest The Fed just stepped up to the plate to 'help out'.
Perhaps the rates were just too high for states to want to partake? Or are they all expecting a direct handout, rather than a Fed-sponsored loan?
The Federal Reserve Board on Tuesday announced revised pricing for its Municipal Liquidity Facility (MLF).
The revised pricing reduces the interest rate spread on tax-exempt notes for each credit rating category by 50 basis points and reduces the amount by which the interest rate for taxable notes is adjusted relative to tax-exempt notes.
Today's changes will ensure the MLF continues to provide an effective backstop to assist U.S. states and local governments as they weather the pandemic.
The MLF was established under Section 13(3) of the Federal Reserve Act, with approval of the Treasury Secretary.
It offers up to $500 billion in lending to states and municipalities to help manage cash flow stresses caused by the coronavirus pandemic.