TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 14, 2022
COMMITTEE ON FINANCE
Mr. Brian A. Perkovich, Executive Director
Title
Report on the investment interest income during April 2022
Body
Dear Sir:
Attached is a report of cash investment interest income received by the District for the month of April 2022 and a comparison of income for the same period in 2021.
The District’s inventory of investments at April 30, 2022, consisted of 328 items having a total par value of $954,871,788.72 an average annual yield of 0.756%, and total interest income to maturity of approximately $15.6 million. Inventory figures at the same date in 2021 consisted of 230 items having a total par value of $765,546,147.01, an average annual yield of 0.460%, and total interest income to maturity of approximately $9.5 million.
Interest Forecast for 2022:
On June 15, 2022, the Federal Reserve (Fed) increased interest rates by 0.75%, bringing the target federal funds rate to 1.5%-1.75%. The Fed anticipates several more interest rate increases throughout 2022 to address elevated inflation, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures. The invasion of Ukraine by Russia is causing tremendous human and economic hardship, and COVID-related lockdowns in China are likely to exacerbate supply chain disruptions.
Respectfully Submitted, Mary Ann Boyle, Treasurer, MAB:sn
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