The Bond Buyer - Muni yields rise further ahead of Fed rate hikes

While an extra 25-basis-points at this meeting “would definitely rattle that equilibrium,” said Jan Szilagyi, CEO of Toggle, “Friday’s inflation number was an unwelcome surprise to both policymakers and markets and diminished hopes for short-term relief from rising rates.”

But, the Fed has other tools it can use, he said. “In particular, they can raise borrowing costs for longer-dated loans by signaling a faster pace of hikes, or a higher ending point.”

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