Page 52 - Fomc News Today

As 2022 unfolds, a confluence of challenges has affected pricing, trading and fund flows in the muni market.

KUALA LUMPUR: The ringgit opened lower against the US dollar on Monday as risk off impulses hit demand for the local currency.

Democratic Sen. Joe Manchin said he won’t back President Joe Biden’s nominee for the Federal Reserve vice chair of supervision, Sarah Bloom Raskin — likely dooming her confirmation in the Senate given Republican opposition.

DASNY leads the calendar with $2.3 billion of exempt personal income tax bonds and $662.32 million of taxables. Potential volume is slated to be $5.11 billion, with $4.392 billion of negotiated deals and $718.1 million of competitive loans.

Investors are expected to demand higher yields for short-dated and long-term bonds anew this week with the expected interest rate hike by the US Federal Reserve to tame inflation, traders said.

Sarah Bloom Raskin’s nomination to be Federal Reserve vice chair of supervision has taken another hit as key Senate Democrat Joe Manchin suggested President Joe Biden’s other four central bank nominees move forward without her.

Federal Reserve Bank of Chicago President Charles Evans said the central bank should increase interest rates to close to its “neutral” setting this year, implying as many as seven quarter-point hikes.

The Russian invasion of Ukraine could slow interest rate hikes and has led the market to pull back on the chances of a 50-basis-point liftoff.

Federal Reserve Bank of Atlanta President Raphael Bostic said he favors raising interest rates by 25 basis points at the Federal Open Market Committee’s March meeting but would consider a larger half-point move if monthly inflation readings fail to decline from elevated levels.

“With inflation well above the FOMC’s longer-run objective and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate,” the Fed said.