"Fed's 'War Games' Exercise Highlights Risks Imposed by Central Bankers"
In this month's Municipal Strategy Report we examine the sharp change in priorities set by the Fed and other central banks. Attention has moved towards macro-prudential policies influencing the financial system as a whole, placing the dual mandate of employment and price stability as by-products of identification and control over financial market risk.
In addition, the strategy report features:
- In “Connecticut Pension Spotlight” we analyze pension burden which is weighing on the state’s current budget as well as its long-term debt burden.
- In “Strong Auto Sales Boosting Fortunes of Five States” we discuss the effects of auto industry’s resurgence on state and local governments, which benefit from increased employment and economic growth, as well as the increased tax revenues that accompany more robust activity.
- In “Municipal Volume Forecast for 2016” we estimate $385 billion in new municipal bond volume for the coming year. New money issuance will remain the same or increase slightly in 2016, while advance refundings will likely decline