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HomeMy WebLinkAbout67337 (2)2013 ECONOMIC COMMENTARY City of Palm Desert i � /n/ c: y�lij(l /'P/' �� e_Jj7 UC%►�J11 fJI1 �� fJC� /!l The Federal Open Market Committee (FOMC) met on October 30, and left short- term interest rates unchanged. The FOMC noted that while economic activity continued to expand at a moderate pace, the unemployment rate remained elevated. The next and final FOMC meeting for 2013 will be on December 17-18. No changes are expected, due to the downside risks that the ongoing fiscai problems in Washington pose. The recent 16-day partial government shutdown may have cost the economy as much as $24 biilion. Janet Yeilen, vice chair of the Federal Reserve, has been nominated to succeed Ben Bernanke when his term expires in January 2014. Yelien is expected to continue the current FOMC policy of monetary expansion, if not increase it. The U.S. economy grew at an annualized rate of 2.8% in the third quarter, as businesses cut investments, and consumers moderated their spending. Much of the growth came from a one-time buildup of business inventory. Without this buildup, the growth rate would have been only 2.0%. A recent decline in the national unemployment rate was due to a drop in labor force participation. Morgan Stanley economists are predicting the weakest holiday-shopping season in five years. At the Wall Street Journal's CEO Council meeting, President Obama said that the U.S. should "scrap" the federal debt ceiling in order to avoid political battles. .r��s ��, e.e..�t.�� : � City Treasurer "` Certified California Municipal Treasurer Thousands of Dollars Month-End Book Value Month-End Market Value Paper Gain (Loss) Prior Year Book Variance Interest Earnings Yield-To-Maturity Weighted Maturity (Days) Effective Duration �<<tl,�x Canital Markets Team City Treasurer Paul S. Gibson, C.C.M.T. Deputy City Treasurer Thomas W. Jeffrey, J.D., M.B.A. investment u The treasurer shall invest all public monies in a manner that ensures safery of principat; sufficient liquidity to finance the City's expenditures; and the highest yield possible after the previous two objectives have been met. PORTFOLIO STATISTICS . $ 202,645 $ 204,899 $ 220,313 $ 220,370 $ 218,688 $ 209,809 $ 202,645 $ 204,899 $ 220,319 $ 220,373 $ 218,697 $ 209,821 $ - $ - $ 6 $ 3 $ 9 $ 12 $ 7,589 $ 5,909 $ 13,559 $ 14,565 $ 1,885 $ (8,277) $ 53 $ 51 $ 59 $ 59 $ 57 $ 53 0.31 % 0.30% 0.31 % 0.32% 0.32% 0.32% 1 1 12 26 26 29 0.00 0.00 0.00 0.00 0.01 0.01 All data as of October 31, 2013