Tuesday, June 9, 2020

Now the Federal Reserve is Bailing Out the New York City Subway System

And yet another direction in which the Federal Reserve is pumping newly printed money out the door and into the economy.

At the urging of Sen. Chuck Schumer, the Fed will add the Metropolitan Transportation Authority, that is the New York City subway system, to the list of entities that it will bail out.

The Fed, via its Municipal Liquidity Facility, is going to buy $30 billion of MTA paper.

“The MTA and its heroic staff have answered the call of duty—and in some cases, sacrificed their lives—to transport essential workers,” Schumer wrote in the letter. “The Federal Reserve should seek to similarly match this call and provide the critical resources and support necessary to help sustain one of the most essential transit authorities in the country.”

I must emphasize, once again, the Fed doesn't haven't any money locked away for this. It is simply printing money out of thin air.

This is not going to end well. The Federal Reserve money pump since the start of the COVID-19 panic is now over three trillion dollars with no signs of stopping.

Accelerated price inflation is coming.


1 comment:

  1. I heard about the $30B in municipal bond purchases today, but I also heard about a closed-door meeting between Schumer and Jerome Powell where Schumer secured $500B in federal aid. Anything on this?