Bailing out the cities

 The Fed can buy into the municipal bond industry, but it collects monopoly gains which remit to Treasury. Cities get taxed for what they borrow. There is at best marginal gain. So Congress allocates general funding for grants to the cities, and then the Fed buys into the treasury market, and regulated banking uses that as collateral. That is a tax on regulated banks.

The net result of the fed balance sheet is tax collection, and how many times must this be said.