New York’s MTA Becomes Second to Tap Fed as Banks Demand Higher Yields
- Move comes after Fed cut premium on loans by 50 basis points
- Joins Illinois as only ones to tap $500 billion facility
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The Federal Reserve bought $451 million of notes sold by New York’s Metropolitan Transportation Authority, making the beleaguered transit agency the second to borrow from the central bank’s $500 billion lending program for states and cities.
The Fed charged a true interest cost of 1.92%, “resulting in savings of over 85 basis points compared to the public market levels,” according to an emailed statement from MTA spokesperson Tim Minton.