HomeMy WebLinkAbout67337 (2)2013
ECONOMIC COMMENTARY
City of Palm Desert
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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.
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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
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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