The municipal market was weaker yesterday as the Federal Reserve opted to cut the federal funds rate target 50 basis points to 3%.

The cut is the second time in just over a week that the Fed has lowered fed funds target, having now decreased the rate 125 basis points over that time period. The Federal Open Market Committee cut the rate 75 basis points last Tuesday, to 3.50% from 4.25%, and then cut again yesterday to 3% from 3.50%.

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