TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 16, 2026
COMMITTEE ON FINANCE
Mr. John P. Murray, Executive Director
Title
Report on the investment interest income during March 2026
Body
Dear Sir:
Attached is a report of cash investment interest income received by the District for the month of March 2026 and a comparison of income for the same period in 2025.
The District’s inventory of investments at March 31, 2026, consisted of 109 items having a total par value of $1,033,331,843.90, an average annual yield of 3.69%, and total interest income to maturity of approximately $38.3 million. Inventory figures at the same date in 2025 consisted of 175 items having a total par value of $1,320,278,635.26, an average annual yield of 4.20%, and total interest income to maturity of approximately $78.2 million.
Interest Forecast for 2026:
On March 18, 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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