Issuers say the Treasury's intent was to open up COVID-19 funds for public safety costs.

Federal Reserve Bank of New York President John Williams said policy makers are “thinking very hard” about targeting specific yields on Treasury securities as a way of ensuring borrowing costs stay at rock-bottom levels beyond keeping the benchmark interest rate near zero.

The $40 billion budget for fiscal 2021 authorizes up to $5 billion of borrowing through the Federal Reserve’s Municipal Liquidity Facility.

Federal Reserve Bank of St. Louis President James Bullard predicted the U.S. economy will recover from the highest unemployment since the 1930s with a rapid rebound that will push the jobless rate below 10% by December.

The Federal Reserve has already unleashed a barrage of new policies to keep the economy out of depression. Investors reckon it’s lining up another one.

The Fed says it has more ammunition; experts define what those bullets are.

Investors, while confident long-term about the transit authority, worry about immediate risks, Chairman Patrick Foye said in a letter.

Numbers in the fall will offer clearer picture of where economy is.

Steve Skancke, chief economic advisor at Keel Point, discusses negative interest rates and what parts of the market would suffer most from their implementation. Gary Siegel hosts.

With the status of federal relief uncertain, Illinois may ask lawmakers for approval to borrow as much as $4.5B through the Fed's MLF to deal with a coronavirus pandemic tax hit in fiscal 2021.

Municipal to U.S. Treasury ratios were attractive, especially on the short end, which drove secondary yields lower.

FOMC members see uncertainty and considerable economic risk from the coronavirus.

More pervasive virus testing and further fiscal stimulus is likely needed to revive consumer confidence and foster growth in the U.S. economy, according to Robert Kaplan, president of the Federal Reserve Bank of Dallas.

The policy case for federal support is strong: in the coronavirus era, the U.S. is looking at an emergency that is the equivalent of 50 states worth of hurricanes, fires and floods, lasting more than two years, with a very slow economic rebound.

The request for a second municipal lending facility was made in a bipartisan letter sent to the Fed last week by four senators.

Federal Reserve Chairman Jerome Powell said the central bank is prepared to use its full range of tools and leave the benchmark lending rate near zero until the economy is back on track.

Kent Hiteshew, who was recently hired by the Fed to help with the municipal market, said the Municipal Liquidity Facility opened Monday.

The Federal Reserve opened the door to participating in a competitive bidding process for short-term notes, a requirement in Illinois law.

The Federal Reserve chair says it may take a while, but the U.S. economy will get back where it was before the coronavirus pandemic.

Uncertainty and volatility have caused a bifurcated market when it comes to credit, and widespread disparity between high-quality and high-yield is complicating matters for issuers.