The Next FOMC Meeting is September 20, 2023 with an 97.0% probability of no rate hike and 3.0% chance of a 25 basis point rate change according to CME Group's FedWatch Tool. Although the Fed is likely to leave the fund rate unchanged next week, many economists anticipate a continued hawkish Fed stance with the possibility of another hike before year-end. In a research note, asset manager BlackRock sees opportunities for investors to buy state and local debt at attractive prices over the next few months with yields climbing higher this year and seasonally-driven unfavorable supply and demand factors ahead.

The Next FOMC Meeting is July 26, 2023 with a 92.4% probability of a 25 basis point hike and 7.6% chance of no rate change according to CME Group's FedWatch Tool. Treasury yields rose across the curve after the ADP jobs report and extended their climb after data showing the service sector expanded in June at the fastest pace in four months. Municipal-bond issuance nationally started to recover in June, marking the first month in 2023 where new issue sales rose year-over-year. Municipalities were likely waiting to see if rates would come down but eventually needed to tap the market for impending project needs.

The recently enacted local government funding legislation (2023 Wisconsin Act 12) imposes significant changes to the shared revenue program, eliminates the personal property tax, and creates an innovation fund to encourage consolidation and transfer of services to promote cost savings. However, as a late-session compromise to gain the support needed to pass this legislation, Act 12 was amended to include provisions for how construction in tax incremental districts (TIDs) will be treated under levy limits that will impact newly created TIDs beginning next year.