WASHINGTON — Two Federal Reserve economists are refuting claims by some analysts that the muni market is headed for several billion dollars in defaults, calling the projections overblown and out of sync with past recessions.

The two separate reports, released by economists at the Federal Reserve Banks of Chicago and Atlanta, contend that the fiscal challenges faced by state and local governments are more likely to result in cost-cutting agony for their elected leaders and messy court battles between them and their employees over pension benefits.

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