U.S. Department of Labor reports record number of Americans quit jobs in September; Consumer confidence hits a 10-year low, however, municipal bond yields continue to decline.

A light news cycle in the markets centers on an uptick in consumer confidence as we await a more lively end to the week with possible news out of Washington and next week's FOMC meeting.

September inflation data increases unease, Fed minutes provide some insights on its potential plan for tapering, munis hit 2021 high, and GFOA releases new best practices on ESG disclosures.

Municipal yields remain stable while the demand for new issues increases. A sampling of economic data is released and in Washington, proposals on municipal bond law changes are introduced to assist with infrastructure financing to be included in the proposed reconciliation package.

Federal Reserve Chair Jerome Powell's comments last week reiterated a consistent, gradual, and measured approach to achieve the Fed's goals for inflation and full employment. In the municipal bond market, demand remains strong, and yields remain relatively stable.

Fed keeps an eye on economic data and the Delta variant, dismisses 2013 comparisons. Relative stability remains the trend for municipal yields, even as volume slightly increases.

The Federal Open Market Committee concluded its policy meeting last week. The U.S. Treasury has taken "extraordinary measures" in response to the federal government reaching the debt ceiling. Meanwhile, trillions in spending are being debated in both chambers and the markets seem to have yawned at the prospect of higher inflation.

Economists surveyed by The Wall Street Journal expect to see slower, but still strong growth through the end of this year.

The monthly employment report has some notable takeaways for the direction of the economy.

U.S. financial markets react to the Fed talking rate increases and tapering their bond purchasing program. Municipal issuance picked up in June, and a low volume of trading has the municipal market relatively stable compared to treasury and equities markets.