The Congressional Oversight Commission (COC) released its fifth report on October 21, twenty-five days after the report was legally required to be distributed. The report focuses on the Municipal Liquidity Facility (MLF) established by the Federal Reserve (Fed), which was the subject of a COC hearing on September 17. The MLF, established by the Fed under its emergency authority under Section13(3) of the Federal Reserve Act, was announced on April 9 and became operational on May 26. The program is designed to provide liquidity to states and municipalities by purchasing up to $500 billion of bonds issued by these entities. Thus far the program has only purchased two notes, issued by the State of Illinois and the New York Metropolitan Transportation Authority (MTA). A number of commenters view the program as inaccessible and various legislators, including Senator Elizabeth Warren, have urged the Fed to amend the terms of the program to make it more available to the states and municipalities that are its intended participants and which are currently struggling with the effects of the pandemic on revenue.
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