TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 17, 2021
COMMITTEE ON FINANCE
Mr. Brian A. Perkovich, Executive Director
Title
Report on the investment interest income during May 2021
Body
Dear Sir:
Attached is a report of cash investment interest income received by the District for the month of May 2021 and a comparison of income for the same period in 2020.
The District’s inventory of investments at May 31, 2021, consisted of 237 items having a total par value of $791,007,450.47, an average annual yield of 0.435%, and total interest income to maturity of approximately $9.6 million. Inventory figures at the same date in 2020 were of 266 items having a total par value of $774,299,279.84, an average annual yield of 0.915%, and total interest income to maturity of approximately $7.2 million.
Interest Forecast for 2021:
On March 17, 2021, the Federal Reserve decided to maintain the federal funds rate range at 0.00% to 0.25%. This decision was based upon observations made on the pace of recovery from COVID-19 and sectors that remain adversely affected by the pandemic. The Fed expects to maintain this target range until labor market conditions have reached maximum employment and when inflation is at 2 percent with the expectation that it will moderately exceed 2 percent for some time.
Respectfully Submitted, Mary Ann Boyle, Treasurer, MAB:st
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