TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 22, 2026
COMMITTEE ON FINANCE
Mr. John P. Murray, Executive Director
Title
Report on the investment interest income during December 2025
Body
Dear Sir:
Attached is a report of cash investment interest income received by the District for the month of December 2025 and a comparison of income for the same period in 2024.
The District’s inventory of investments at December 31, 2025, consisted of 97 items having a total par value of $901,566,003.07, an average annual yield of 3.79%, and total interest income to maturity of approximately $39.0 million. Inventory figures at the same date in 2024 consisted of 146 items having a total par value of $1,179,634,275.23, an average annual yield of 4.39%, and total interest income to maturity of approximately $67.5 million.
Interest Forecast for 2026:
On December 10, 2025, the Federal Reserve (Fed) decided to lower the target range for the federal funds rate to 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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