Economics

Federal Reserve System

(REUTERS/Alvin Baez) - U.S. Democratic presidential candidate Bernie Sanders addresses the audience at the theater of the University of Puerto Rico in San Juan, Puerto Rico, May 16, 2016.

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Bernie Sanders called on the Fed to restructure Puerto Rico’s debt, but can it happen?

May 18, 2016, Fred Dews

Bernie Sanders was in Puerto Rico on Monday and Tuesday of this week to campaign ahead of the June 5 Democratic caucus. Speaking at a rally on Monday night Sanders addressed the issue of Puerto Rico’s $70 billion in public debt, calling for the Federal Reserve to restructure Puerto Rico's debt. Following the comments, many have wondered if such debt restricting is really within the Fed’s authority. We asked two Brookings experts, former presidential advisor Barry Bosworth and former Vice Chair of the Federal Reserve Board of Governors Don Kohn their take. Here’s what they said.

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