Washington

The Federal Reserve took action against a small bank in southern Illinois whose exposures to interest rate changes left it with negative equity last year. The enforcement action comes as regulators review their oversight practices following Silicon Valley Bank's failure.

Federal Reserve Bank of St. Louis President James Bullard said he thinks the U.S. central bank can still achieve a soft landing, with inflation returning to the Fed's 2% target without triggering a significant downturn.

Outflows from municipal bond mutual funds intensified as Refinitiv Lipper reported $846.116 million was pulled from them as of Wednesday after $92.055 million of outflows the week prior. 

"The vast majority" of state and local issuers would be resilient to a one-notch downgrade in the U.S. rating, Moody's said.

The Local Infrastructure Hub is designed to help municipalities tap into $42 billion in federal grants

Circuit Judge John K. Bush cited Alexander Hamilton's insistence in the Federalist Papers that states would retain their authority over their own taxation.

The secondary was quiet and the sole deal of size came from a $400 million-plus competitive water and sewer loan from Portland, Oregon. The recent rise in yields makes for more compelling levels.

An expansion of the Northeast Corridor rail link and a proposed bullet train between Portland and Vancouver are two of the infrastructure developments in muni finance.

Streamlining the federal grant process should start with getting rid of the "government legalese" that complicates notice of funding opportunities, experts said.

The Treasury Department's Bureau of Fiscal Service has suspended the sales of State and Local Government Series securities in efforts to avoid defaulting on the debt limit.