by Mike ‘Mish’ Shedlock
The Fed has a Municipal Liquidity Fund (MLF). Illinois has tapped it twice.
Fed is Lender of Last Resort for Illinois
Wirepoints reports Illinois set to borrow from Fed’s “lender of last resort” facility a second time
Illinois is set to borrow several billion from the Federal Reserve’s Municipal Liquidity Fund (MLF) for a second time if a new U.S. stimulus package and a progressive tax hike scheme for Illinois don’t come through, according to comments from Illinois Gov. J.B. Pritzker.
Illinois already borrowed $1.2 billion from the MLF earlier this year in an attempt to close some of the state’s 2020 budget shortfall.