WASHINGTON — House Financial Services Committee Democrats yesterday harshly criticized the Federal Reserve for its reluctance to intervene in the municipal bond market, arguing that they are holding it to an unfair double standard.

The comments, at a hearing to discuss four muni-related bills drafted by the committee, came as David Wilcox, deputy director of the Fed’s division of research and statistics, testified that the central bank has deep misgivings about one of the bills that would authorize it to provide liquidity facilities for variable-rate demand obligations.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.