TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 19, 2026
COMMITTEE ON FINANCE
Mr. John P. Murray, Executive Director
Title
Report on the investment interest income during January 2026
Body
Dear Sir:
Attached is a report of cash investment interest income received by the District for the month of January 2026 and a comparison of income for the same period in 2025.
The District’s inventory of investments at January 31, 2026, consisted of 98 items having a total par value of $846,704,542.41, an average annual yield of 3.74%, and total interest income to maturity of approximately $38.2 million. Inventory figures at the same date in 2025 consisted of 133 items having a total par value of $1,088,510,124.30, an average annual yield of 4.19%, and total interest income to maturity of approximately $73.0 million.
Interest Forecast for 2026:
On January 28, 2026, the Federal Reserve (Fed) decided to maintain the target range for the federal funds rate at 3.50-3.75%. The current median projection for 2026 is 3.40%. The Fed remains highly attentive to inflation expectations and seeks to achieve maximum employment along with an inflation rate of 2.00%. The Fed will continue to adjust its monetary policy based on its assessment of labor market conditions, inflation pressures and expectations, and financial and international developments.
Respectfully Submitted, Steven J. Lux, Treasurer, SJL:ehh
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