Municipals were mostly steady Wednesday… after Fed Chairman Jerome Powell said scaling back asset purchases was not on the table yet. Triple-A benchmarks did see some strength on the short end, moving yields lower by a basis point, while out longer there was slight pressure on levels. … Reaching “substantial further progress” toward its maximum-employment and price-stability goals, which will allow the Federal Reserve to cut back on asset purchases “is still a ways off,” Federal Reserve Board Chair Jerome Powell repeated Wednesday. Testifying before the House Financial Services Committee, where many members expressed concern about inflation, Powell said price pressures are transitory and the economy will continue to need accommodation even when the pandemic ends and the labor market rebounds. Preemptive action would harm the economy.
Source: Bond Buyer.
