Washington

The District of Columbia deals will bring a mix of new money and refunding bonds with a variable-rate component.

Analysts were pleased that a known quantity with bona fides was the pick, but Warsh may bring about changes in the Fed that have some concerned.

"These municipal bond schemes improperly divert new issue bonds to bad actors at the expense of bona fide retail investors," FINRA's Meghan Ferguson said.

Warsh, who served on the U.S. central bank's Board of Governors from 2006 to 2011 and has previously advised Trump on economic policy, would succeed Jerome Powell when his term at the helm ends in May.

Over the past five years, January has seen a relatively stable market tone, said Jeff Timlin, managing partner and head of municipal bond investing at Sage Advisory.

"Markets are reading this as a strategic pause, not a policy shift," said Gina Bolvin, president of Bolvin Wealth Management Group.

Democrats said they've paused negotiations until the administration relaxes its anti-clean energy stance.

Public finance advocates are trying to interpret mixed signals about plans to pass a major reconciliation bill that could put the threat to the tax-exempt status of munis back on the table.

MSRB CEO Mark Kim described GFOA's letter suggesting changes the MSRB could make as "very constructive, very valuable."

Bond advocates are watching the appropriations process while the possibilities of a Farm Bill and surface transportation reauthorization may offer openings for restoring advance refunding and raising the BQ cap.