The threat of an upcoming recession shouldn’t worry states and local governments who’ve already weathered COVID-19 related shutdowns, as many local governments are in the best fiscal shape they’ve ever been in. That’s according to panelists gathered on Wednesday for The Volcker Alliance and the Penn Institute for Urban Research’s briefing on inflation and recession for states and cities. “Given the ample rainy day funds that states have been able to accumulate and obviously a large part of that is due to the federal government support that has been provided throughout the pandemic in lots of different ways, directly and indirectly, states and localities are in about as good a shape as they have ever been coming into something like this.” said Mark Zandi, chief economist at Moody’s Analytics.
Source: The Bond Buyer
