Jerome Powell: “the overwhelming majority of municipal borrowers are investment grade, and we did limit the facility to that.”

I think that's right

Part of that is due to the start-stop nature of the tariffs that have been introduced.

without the ability to pay interest on reserves, the Fed would lose control over rates

As long as the U.S. economy is in solid shape, the prudent thing to do is to wait and learn more and see what the effect might be.