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HomeMy WebLinkAbout64132 (2)2013 City of Palm Deser� , �/ �� 1<�a.�k�r�� -� �'j�c���StnzPj7f � ��rl ECONOMIC COMMENTARY The Federal Reserve is mapping an exit ftom the stimulus. The timing of winding down the Fed's $85 billion-a-month bond-buying program remains uncertain, however. Fifty-five percent of private economists believe that the Fed will begin shrinking its bond purchases in the second half of 2013, while another 45 percent believe that this will happen in 2014 or later. Fed o�cials want to see a substantial improvement in the job market before they start the wind-down. Even then, the Fed may not boost short-term interest rates for months or even years later. Wells Fargo Bank is forecasting U.S. economic growth of 1.2 percent in the second quarter of 2013, with a pick-up to 2 percent in the second half as business investment and housing add to growth. Government will continue to be a drag on growth, however, as spending at federal and state levels continues to be cut back. Rising government revenue from tax collections and bailout paybacks are shrinking the federal deficit faster that expected. This may lead to a more intransigent Congress since neither side will believe that it has to make concessions in order to reduce the deficit. The Dow Jones Industrial Average closed above 15,000 for the first time as investors poured into the stock market, seeing few altematives to stocks. The RDA Successor Agency investment portfolio fell by $15.8 million in April, due to the payment of debt service. 9'au�S. C�a�, C'.C'..�Lt.✓�: �` City Treasurer " Certified California Municipal Treasurer PORTFOLIO STATISTICS 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 $ $ $ $ $ 199,761 $ 199,776 $ 15 $ (10,437) $ 53 $ 0.33% 29 0.01 197,943 $ 197,962 $ 19 $ (12,660) $ 56 $ 0.34% 29 0.02 201,340 $ 201,384 $ 44 $ (11,127) $ 52 $ 0.34% 28 0.02 Deputy City Treasurer Thomas W. Jeffrey, J.D., M.B.A. I nvestment Markets Team City Treasurer Paul S. Gibson, C.C.M.T. ��>�Xl� The treasurer shalt invest all public monies in a manner that ensures safety of principal; sufficient liquidity to finance the City's expenditures; and the highest yield possible after the previous finro objectives have been met. 198,185 $ 198,223 $ 38 $ (32,215) $ 55 $ 0.35°/a 29 0.03 192,086 $ 192,120 $ 34 $ (14,228) $ 54 $ 0.34% 31 0.03 194, 781 194, 809 28 1,165 58 0.37% 29 0.03 All data as of April 30, 2013