The coronavirus has shaken the foundation of the municipal market and participants are looking cautiously to the Fed while attempting to adjust to the sustained volatility.

The U.S. economy went into a defensive crouch as the coronavirus swept through the country.

ICI reported nearly $3 billion of outflows, which is foretelling that coronavirus-driven volatility still lingers even if the muni market has rallied by at least 60 basis points since early-April high yields.

Uncertainty remains the only constant regarding the coronavirus pandemic, and two Federal Reserve Bank presidents offered positive thoughts, although no definitive answers.

Confidence in the municipal market among participants has been boosted by the Fed purchase program, but some expect that if equities dive amid more coronavirus fears or re-test March lows, munis could be rattled once again.

Although there’s still no way to tell how long the COVID-19 shutdown will last, or how much economic damage will result, the Federal Reserve’s speedy descent to the zero lower bound will assist the recovery, according to a report.

Federal Reserve Vice Chairman Richard Clarida says the central bank has the tools needed to keep the U.S. out of a deflationary trap, even as the coronavirus deals a severe hit to the economy.

Without an effective therapy or a vaccine for the novel coronavirus, the U.S. economy could face 18 months of rolling shutdowns as the outbreak recedes and flares up again, Federal Reserve Bank of Minneapolis President Neel Kashkari said.

The Municipal Liquidity Facility will purchase up to $500 billion of short-term notes.

COVID-19 will have a lasting impact on economic prosperity, said Federal Reserve Bank of Chicago President Charles Evans.

Policymakers saw risks pointing to the downside and warranting a “forceful” response, according to a record of their emergency gathering on March 15.

Tax-exempt and taxable deals priced as dealers opened up their balance sheets to new issues while the market still awaits word from the Fed on coronavirus-led purchase programs.

The state's ratings are low investment grade, but the secondary market is pricing its bonds as high-yield.

Municipal market participants are confused, to say the least, about the Federal Reserve and its ability to buy long-term municipal securities. And there’s a good reason for the puzzlement.

More federal rescue moves are necessary for the nation’s largest mass transit system, according to the advocacy group Reinvent Albany.

With Fed purchases on short end, more deals are showing up on the calendar and this week may become the testing ground for reopening the primary as participants gauge volatility and rates.

The central bank is creating a facility to provide financing to banks participating in the Small Business Administration’s Paycheck Protection Program.

While some economists expect a V-shaped recovery, others say it will not be as sharp as the decline, and it could be years before output rises to pre-coronavirus levels.

BDA wants the he Fed to consider a standby, short-term lending facility for states and localities experiencing cash flow timing shortfalls.

Federal Reserve Bank of Cleveland President Loretta Mester said U.S. unemployment could rise as high as 15% as the U.S. forcibly shuts down important parts of its economy to help contain the coronavirus pandemic.