TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 23, 2025
COMMITTEE ON FINANCE
Mr. Brian A. Perkovich, Executive Director
Title
Report on the investment interest income during December 2024
Body
Dear Sir:
Attached is a report of cash investment interest income received by the District for the month of December 2024 and a comparison of income for the same period in 2023.
The District’s inventory of investments at December 31, 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. Inventory figures at the same date in 2023 consisted of 177 items having a total par value of $955,538,560.21, an average annual yield of 4.32%, and total interest income to maturity of approximately $36.9 million.
Interest Forecast for 2025:
On December 18, 2024, the Federal Reserve (Fed) decided to lower the target range for the federal funds rate by 0.25% to a range of 4.25-4.50%. The target median rate for 2024 was 4.40% while the current median projection for 2025 is 3.90%. 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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