TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 18, 2025
COMMITTEE ON FINANCE
Mr. John P. Murray, Acting Executive Director
Title
Report on the investment interest income during August 2025
Body
Dear Sir:
Attached is a report of cash investment interest income received by the District for the month of August 2025 and a comparison of income for the same period in 2024.
The District’s inventory of investments at August 31, 2025, consisted of 133 items having a total par value of $1,074,457,471.36, an average annual yield of 4.10%, and total interest income to maturity of approximately $70.3 million. Inventory figures at the same date in 2024 consisted of 187 items having a total par value of $1,149,846,230.24, an average annual yield of 4.61%, and total interest income to maturity of approximately $79.7 million.
Interest Forecast for 2025:
On July 30, 2025, the Federal Reserve (Fed) decided to maintain the target range for the federal funds rate at 4.25-4.50%. The current median projection for 2025 is 3.90%. 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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