TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 20, 2025
COMMITTEE ON FINANCE
Mr. Brian A. Perkovich, Executive Director
Title
Report on the investment interest income during January 2025
Body
Dear Sir:
Attached is a report of cash investment interest income received by the District for the month of January 2025 and a comparison of income for the same period in 2024.
The District’s inventory of investments at January 31, 2025, consisted of 133 items having a total par value of $1,088,510,124.30, an average annual yield of 4.19%, and total interest income to maturity of approximately $73.0 million. Inventory figures at the same date in 2024 consisted of 168 items having a total par value of $864,351,487.16, an average annual yield of 4.19%, and total interest income to maturity of approximately $44.1 million.
Interest Forecast for 2025:
On January 29, 2025, the Federal Reserve (Fed) decided to maintain the target range for the federal funds rate at 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
Attachment