States and cities are on the front lines of coronavirus. The Fed needs to help them.

One easy change that could make all the difference in controlling the virus and limiting its economic damage

Jerome Powell.
(Image credit: Illustrated | Getty Images, iStock)

The U.S. government is scrambling to pass a mammoth aid package for the economy, which faces potentially unprecedented destruction from the coronavirus crisis. But the pandemic also threatens a massive financial crunch at the state and local level — one that, if not dealt with, could completely overwhelm national efforts to prevent another Great Depression.

There is plenty Congress can do to aid state and city budgets via new legislation. But the Federal Reserve could also act unilaterally, right now, under its already-existing powers. It needs to do so. Like, yesterday.

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Jeff Spross

Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.