E-Quarterly Newsletter


Market Commentary

Market Commentary
The Next FOMC Meeting is January 31, 2024 with an 93.3% probability of no rate hike and 6.7% chance of a 25 basis point rate cut, according to CME Group's FedWatch Tool. Treasury yields rose after data showed US companies ramped up hiring in December and jobless claims came in lower than estimates, potentially indicating a slower normalization of rates. Citigroup, Inc. announced yesterday that it is closing its municipal bond division due to concerns with diminished fees. The CEO stated it is "no longer viable given our commitment to increase the firm's overall returns" and intends to completely wind down operations by the end of the first quarter.
Market Commentary
The Next FOMC Meeting is January 31, 2024 with an 93.3% probability of no rate hike and 6.7% chance of a 25 basis point rate cut, according to CME Group's FedWatch Tool. Treasury yields rose after data showed US companies ramped up hiring in December and jobless claims came in lower than estimates, potentially indicating a slower normalization of rates. Citigroup, Inc. announced yesterday that it is closing its municipal bond division due to concerns with diminished fees. The CEO stated it is "no longer viable given our commitment to increase the firm's overall returns" and intends to completely wind down operations by the end of the first quarter.
Market Commentary
The Next FOMC Meeting is November 1, 2023, with an 99.3% probability of holding steady and 0.7% chance of implementing a 25 basis point rate increase, according to CME Group's FedWatch Tool. The 10-year treasury has flirted with 5% over the past few weeks, which is an important plateau for financial watchers. US Treasury Secretary Janet Yellen stated the increase in longer-term rates is a reflection of a strong US economy, not the expansion of government borrowing. The U.S. Economy grew at a 4.9% pace last quarter, which was the fastest expansion since 2021. That pace was more than double second quarter grown, according to a preliminary estimate released by the federal government.
Market Commentary
The Next FOMC Meeting is November 1, 2023, with an 99.3% probability of holding steady and 0.7% chance of implementing a 25 basis point rate increase, according to CME Group's FedWatch Tool. The 10-year treasury has flirted with 5% over the past few weeks, which is an important plateau for financial watchers. US Treasury Secretary Janet Yellen stated the increase in longer-term rates is a reflection of a strong US economy, not the expansion of government borrowing. The U.S. Economy grew at a 4.9% pace last quarter, which was the fastest expansion since 2021. That pace was more than double second quarter grown, according to a preliminary estimate released by the federal government.

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
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.

Events

February 1-2, 2024
The Westin Edina Galleria

Ehlers’ 2024 Minnesota Public Finance Seminar

Join us for Ehlers' 2024 Minnesota Public Finance Seminar where our advisors will lead information and interactive sessions covering municipal finance, tax increment financing and development. We'll also hear from the League of Minnesota Cities relative to all things happening at the Capitol, and Ron Wirtz from the Federal Reserve Bank of Minneapolis will offer insights into the state of our regional economy.
February 15-16, 2024
The Kalahari Resort & Convention Center

Ehlers’ 2024 Wisconsin Public Finance Seminar

Join us in The Dells for Ehlers' annual public finance seminar where our advisors and guest speakers will lead informative sessions covering a range of municipal finance, development, tax incremental financing, and communication topics.