How Rate Volatility Is Impacting the Muni Market

The video discusses the impact of the September CPI on Fed rate hikes and the municipal market. Whitney Fitts from Appleton Partners explains the volatility in the muni market due to inflation and supply-demand dynamics. Despite retail outflows, demand for bonds remains strong. The video explores yield opportunities in different parts of the curve, highlighting the attractiveness of the 9 to 12-year segment. It also addresses the potential impact of Fed policies on state and local budgets, noting that while governments are in good shape, certain sectors like hospitals face challenges.

What is the expected impact of the September CPI print on the Federal Reserve's actions?

• It will lead to a decrease in interest rates.

• It will keep the Fed committed to rate hikes.

• It will cause the Fed to stop rate hikes immediately.

• It will have no impact on the Fed's decisions.

What is a major factor affecting the municipal market according to Whitney Fitts?

• International trade agreements

• Supply and demand dynamics

• Technological advancements

• Political elections

How does the municipal market's short end of the curve compare to Treasuries?

• It is stronger than Treasuries.

• It is weaker than Treasuries.

• It is equal to Treasuries.

• It is not affected by Treasuries.

What is the Federal Reserve's stance on inflation as discussed in the video?

• They are waiting for inflation to resolve itself.

• They are reducing interest rates to combat inflation.

• They are committed to tackling inflation.

• They are ignoring inflation.

Which sector is mentioned as facing challenges due to hiring difficulties?

• Hospital sector

• Agricultural sector

• Technology sector

• Retail sector