Even more uncertainty has been introduced into the municipal bond market as the Federal Reserve may have to tweak its monetary policy plans as the situation unfolds.

Investors will be greeted Monday with a new-issue calendar estimated at $6.041 billion.

Disruptions and dislocations associated with more volatile business cycles have already created opportunities for active fixed income management, as the dramatic interest rate increase of 2022 illustrates.

The two-year UST is now a full point above the 10-year UST, something that hasn't happened since 1981.

Goolsbee's history of supporting Democratic policies and criticizing Republican ones on TV and radio talk shows, is raising concerns that the central bank is becoming increasingly politicized.

Ellis Phifer, managing director and senior strategist in the fixed income research department at Raymond James, talks with Chip Barnett about the state of the bond markets. (Taped Feb. 16; 15 minutes)

The Federal Reserve said further interest-rate hikes would be required to restore price stability.

Federal Reserve Bank of Atlanta President Raphael Bostic called for continued interest-rate hikes to above 5% ensure that inflation returns to the central bank's target and doesn't reaccelerate in a pattern similar to the 1970s.

Central bankers must augment what they learn from incoming data with clues gleaned from the real economy and avoid putting too much weight on financial markets, said Federal Reserve Bank of Chicago President Austan Goolsbee.

Cleveland Fed President Loretta Mester said a bigger-than-expected rise in the central bank's preferred inflation gauge shows the need to keep raising interest rates.

Mohamed El-Erian says the financial markets are starting to doubt whether the Federal Reserve can bring inflation down to its 2% target.

The White House is narrowing its search for a nominee to become the next Federal Reserve vice chair, intending to swiftly replace Lael Brainard, who became President Joe Biden's top economic adviser this week.

Federal Reserve Bank of St. Louis President James Bullard said the U.S. economy is proving more resilient than expected and repeated his call for the central bank to keep raising interest rates.

Two of the Federal Reserve board's seven governors abstained from supporting the selection of former Obama aide Austan Goolsbee to become president of the Chicago Fed, according to a record of the vote.

"At this juncture, the incoming data have not changed my view that we will need to bring the fed funds rate above 5% and hold it there for some time," Mester said.

The markets are looking for a Fed pivot, but central bankers continue to say more hikes are coming and rates will stay higher longer. OANDA's Ed Moya joins us after the meeting to give a comprehensive look at what the Fed signals for the future.

The Fed in a statement said Brainard submitted her resignation Tuesday, and that it will be effective on or around Feb. 20.

Two officials said Tuesday that interest rates may need to move to a higher level than anticipated to ensure inflation continues to ease.

The Federal Reserve will likely have to keep raising interest rates to rein in price growth, which could slow economic expansion and affect the jobs market, Governor Michelle Bowman said.

"We actually are increasing the odds — we can get a soft landing. That doesn't mean we're out of the woods," Harker said.