Federal Reserve officials said that more fiscal support and the mass distribution of vaccines could lead to a strong U.S. economic recovery in the second half, setting the stage for a discussion of potential tapering of bond buying before year’s end.

Federal Reserve Bank of Richmond President Thomas Barkin says the U.S. could face a bumpy first six months but will be well supported by the rollout of COVID-19 vaccines and fiscal stimulus later in the year.

Transcripts of the Federal Reserve’s 2015 policy meetings show that then-Fed Chair Janet Yellen acknowledged that the Fed should sacrifice potential job gains in order to cut off the possibility of higher inflation.

Federal Reserve officials shouldn’t intervene to slow rising bond yields because that is expected to happen as the U.S. economy recovers, said Federal Reserve Bank of Dallas President Robert Kaplan.

The Federal Reserve has returned about $42 billion to the U.S. Treasury, and will soon transfer another $20 billion in excess funds connected to emergency lending facilities that stopped offering new loans last month.

It was inevitable that muni yields would need to rise somewhat as the UST 10-year broke above 1%, however participants said the supply/demand imbalance will keep munis from rising as quickly as Treasuries. More than $1 billion inflows reported.

The top 20 more than doubled the gains of their fixed-income industry peers.

Federal Reserve officials unanimously backed holding the pace of asset purchases steady when they met last month.

Federal Reserve Bank of Chicago President Charles Evans says monetary policy will need to remain “accommodative for quite a while,” since inflation won’t hit a 2% average for “a long time.”

Dominick D'Eramo, head of fixed income at Wilmington Trust Investment Advisors, talks with Chip Barnett about how the municipal bond market did in 2020 and what may be on tap for munis in the new year. (12 minutes)

The rotational changes for the FOMC voters will be more centered, walking a more balanced line between hawks and doves, analysts believe.

With its revised framework, it will take more than rising inflation for the Federal Reserve to raise rates.

Congress is set to pass a major $900 billion relief bill on Monday after getting over a significant hurdle from Senate Republicans seeking to restrict the Federal Reserve’s powers next year.

Another $900 billion of fiscal support would “absolutely” make a significant difference to the U.S. economy’s ability to endure COVID-19, but “challenging months” lie ahead, a top Federal Reserve official said.

Federal Reserve Vice Chairman Richard Clarida, voicing optimism on the economic outlook thanks to coronavirus vaccines, said the U.S. will likely avoid slipping back into recession as growth rebounds next year.

The Federal Reserve's Summary of Economic Projections forecasts inflation won't hit its 2% target next year, and others agree.

State and local governments are going to need generous lines of credit to get through the next few months. Joe Biden has an opportunity to act by rethinking the Municipal Liquidity Facility at the Federal Reserve.

Illinois closed Thursday on its second MLF borrowing as the program nears its expiration date.

The Federal Open Market Committee announcement commits it to buying at least $120 billion of securities a month until “substantial further progress” is made on its dual mandate of stable prices and maximum employment, suggesting it will continue well into 2022.

The Federal Reserve said it will continue to support the economy through massive monetary stimulus until it sees “substantial further progress” in employment and inflation.