Washington

Federal Reserve Bank of Cleveland President Loretta Mester reiterated the central bank needs to keep tightening gradually.

Muni issuers rushing to get advance refundings done in December before Congress passes a tax bill that terminates them may face a halt in sales of state and local government securities because of the debt limit.

Traders saw "a major flip in psychology of the market" as moves to bar private activity bonds and advance refundings met some resistance.

The group plans to sell roughly $1 billion of bonds, with a mix of btax-exempt and taxable debt.

With rates trending higher, the county still hopes an advance refunding will save water and sewer ratepayers $68 million.

The possibility of the municipal market losing both advance refundings and private activity bonds brought a spike in issuance that's likely to extend into December.

The year-end deadlines built into the GOP tax bills guarantee long hours in December for those putting together deals before Jan. 1.

Congress should look to municipal experts to make the case for revenue triggers as a way to allay concern that tax cuts will necessitate spending reductions.

House Ways and Means Committee Chair Kevin Brady said the private-activity bond provision was included in the House tax bill so lawmakers would have more time to discuss these bonds.

Marvin Goodfriend, a noted economist and former Richmond Fed official, was tapped to fill one of three vacancies on the Fed board.