TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 16, 2023
COMMITTEE ON FINANCE
Mr. Brian A. Perkovich, Executive Director
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Report on the investment interest income during February 2023
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Dear Sir:
Attached is a report of cash investment interest income received by the District for the month of February 2023 and a comparison of income for the same period in 2022.
The District’s inventory of investments at February 28, 2023, consisted of 200 items having a total par value of $808,435,148.38, an average annual yield of 3.34%, and total interest income to maturity of approximately $20.2 million. Inventory figures at the same date in 2022 consisted of 263 items having a total par value of $774,234,239.88, an average annual yield of 0.66%, and total interest income to maturity of approximately $14.3 million.
Interest Forecast for 2023:
On February 1, 2023, the Federal Reserve (Fed) increased interest rates by 0.25%, bringing the target federal funds range to 4.50%-4.75%. The current target median rate for yearend currently remains unchanged at 5.10% as announced in December, but the Fed is expected to update this target in the coming weeks and continue to increase rates until that target is reached in its efforts to address elevated inflation, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures; Russia’s war against Ukraine and related events are cited as major contributing factors to this pressure on inflation and global economic activity.
Respectfully Submitted, Mary Ann Boyle, Treasurer, MAB:eh
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