E-Quarterly Newsletter


Market Commentary

Market Commentary
The Next FOMC Meeting is Wednesday, March 22, 2023 with a 64.6% probability of a 50 basis point rate hike according to CME Group Fed Watch Tool. Chair Powell's comments this week indicate and even greater likelihood of aggressive Fed action to bring inflation back to acceptable levels. Data released Wednesday suggested the labor market remains strong. ADP reported private-sector jobs rose 242,000 in February, surpassing the 195,000 estimated to have been added by economists polled by IFR Markets.
Market Commentary
The Next FOMC Meeting is Wednesday, March 22, 2023 with a 64.6% probability of a 50 basis point rate hike according to CME Group Fed Watch Tool. Chair Powell's comments this week indicate and even greater likelihood of aggressive Fed action to bring inflation back to acceptable levels. Data released Wednesday suggested the labor market remains strong. ADP reported private-sector jobs rose 242,000 in February, surpassing the 195,000 estimated to have been added by economists polled by IFR Markets.
Market Commentary
The Next FOMC Meeting is Wednesday, March 22, 2023 with a 73.0% probability of a 25 basis point rate hike according to CME Group's Fed Watch Tool. Recent FOMC minutes indicate participants remain concerned about still-high inflation and committed to bringing it down to the target 2%. Muni bond yields are up across the curve, increasing ratios to US treasuries, showing relative weakness of tax-exempts to table alternatives.
Market Commentary
The Next Federal Open Market Committee meeting is Wednesday, March 22, 2023.  According to CME Group Fed Watch Tool, there is a 96.7% probability of another 25 basis point rate hike. The U.S. added 517,000 new jobs in January, well above the 187,000 forecast.  These results are drawing concerns about the Fed's prolonged tightening measures. On a relative basis, short munis are yielding about 50% of Treasuries, a ratio far below a 12-month average at 67%. This means munis are currently quite expensive.

Press Releases

Press Releasle
Ehlers' Board of Directors appointed Senior Municipal Advisor and firm Principal Greg Crowe as its next President.
Press Releasle
Ehlers was named to Minneapolis Star Tribune's list of Top 150 Workplaces for 2020. It was the first year the firm participated in the program.

In the News

Market Commentary
Minnesota Association of School Administrators (MASA)

Dr. Jeffrey Olson Receives MASA Polaris Leadership Award Sponsored by Ehlers

MASA is grateful to Ehlers for our ongoing support of the Polaris Award. Check out MASA's press release on this year's recipient.
Market Commentary
The Municipality: Your Voice. Your Wisconsin

COVID-19 & Maintaining Fiscal Stability

Ehlers' Financial Specialist Jonathan Schatz discusses how Wisconsin Municipalities can maintain financial stability while facing the challenges posed by the COVID-19 Pandemic. Read the article on Page 8.
Market Commentary
Country News Review

Ehlers’ Jessica Cook Updates North Branch City Council on Utility Rate Studies

Well managed utility funds were the topic of discussion during the city of North Branch’s work session on March 17, along with a presentation of the city’s Utility Fee Study by Ehlers. Jessica Cook, Economic Development Advisor with Ehlers Inc. provided council with the update. “I have the pleasure of sharing some good news with you this evening, especially in the difficult time it’s nice to have, as it relates to the storm water fund and the sewer fund,” Cook began.
Market Commentary
Sun This Week

MN School District 196 Approves Financing Bids For New Artificial Turf Fields

Ehlers' client, the Rosemount-Apple Valley-Eagan School District, approved financing and awarded bids April 13 for construction of artificial turf fields at Eagan and Rosemount high schools. Jodie Zesbaugh, Ehlers' Senior Municipal Advisor serving the district, detailed the positive sale results for the District's School Board.

Client Alerts

Press Releasle
As your disclosure dissemination agent, we want to make you aware of an important public statement the Securities and Exchange Commission (SEC) released last week. In it, SEC Chair Jay Clayton and Rebecca Olsen, Director of the Office of Municipal Securities, stressed the heightened importance of disseminating timely disclosures to investors due to the potential financial impacts of COVID-19, as well as encouraging municipal issuers to voluntarily provide meaningful forward-looking information with respect to both issuer and issue-specific implications of the pandemic.

Events

Friday, March 31, 2023
Crowne Plaza Minneapolis West

Ehlers’ 2023 Minnesota School Finance Seminar

Explore a variety of topics including capital project financing, budget and enrollment projections, the importance of effectively managing bond proceeds in today’s interest rate environment and much more at Ehlers' 2023 School Finance Seminar!
February 16-17, 2023
Kalahari Resort & Convention Center

Ehlers’ 2023 Wisconsin Public Finance Seminar