TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 17, 2024
COMMITTEE ON FINANCE
Mr. Brian A. Perkovich, Executive Director
Title
Report on the investment interest income during September 2024
Body
Dear Sir:
Attached is a report of cash investment interest income received by the District for the month of September 2024 and a comparison of income for the same period in 2023.
The District’s inventory of investments at September 30, 2024, consisted of 182 items having a total par value of $1,106,892,744.59, an average annual yield of 4.51%, and total interest income to maturity of approximately $83.1 million. Inventory figures at the same date in 2023 consisted of 220 items having a total par value of $866,591,283.99, an average annual yield of 3.95%, and total interest income to maturity of approximately $42.2 million.
Interest Forecast for 2024:
On September 18, 2024, the Federal Reserve (Fed) decided to lower the target range for the federal funds rate by 0.50% to a range of 4.75-5.00%. The current median projection for 2024 is 4.40%. The Fed remains highly attentive to inflation expectations and seeks to achieve maximum employment along with an inflation rate of 2.00% over time. 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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