TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 2, 2023
COMMITTEE ON FINANCE
Mr. Brian A. Perkovich, Executive Director
Title
Report on the investment interest income during September 2023
Body
Dear Sir:
Attached is a report of cash investment interest income received by the District for the month of September 2023 and a comparison of income for the same period in 2022.
The District’s inventory of investments at September 30, 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. Inventory figures at the same date in 2022 consisted of 257 items having a total par value of $ 806,860,700.67, an average annual yield of 1.80%, and total interest income to maturity of approximately $17.1 million.
Interest Forecast for 2023:
On September 20, 2023, the Federal Reserve (Fed) decided to maintain the target federal funds rate range at 5.25-5.50%. The current target median rate for 2023 is at 5.60%. The Fed remains highly attentive to inflation risks and seeks to achieve maximum employment along with inflation at a rate of 2% 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, Mary Ann Boyle, Treasurer, MAB:eh
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