Fed Plan to Help Other Big Cities More Than Chicago

CPR:

The U.S. Federal Reserve on Tuesday moved to ease a credit crunch that’s endangering the economy. But an expert says Chicago may not benefit as much as other big cities.

The Federal Reserve said it would buy massive amounts of what’s known as commercial paper. That’s a form of short-term financing that investors provide large companies for day-to-day operations.

Abol Jalilvand, the dean of Loyola University’s business school, says Chicago has less to gain from the Fed’s move than places like New York or Los Angeles. He says that’s because Chicago has relatively few large companies.

JALILVAND: The majority of that economy is produced by medium and small-sized companies. These companies are not naturally funding their short-term activities through commercial papers.