The Federal Reserves legal authority to give Puerto Rico emergency funding to help it emerge from a $70 billion debt crisis is extremely limited, Fed Chair Janet Yellen told senators on Tuesday.
I think our authority is extremely limited, and it wouldnt be appropriate for us to give loans to Puerto Rico, Yellen said in response to a question from Sen. David Vitter (R-La.). We have very limited authority to buy municipal debt.
Yellen said the authority the Fed does have probably wouldnt be helpful to the commonwealth.
Sen. Bernie Sanders (I-Vt.) has been the most vocal Senate advocate for emergency Fed aid, and hes pushed for that approach on the campaign trail.
Last month, Vitter introduced legislation that would bar the use of t…
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