HomeMy WebLinkAbout65545 (2)2013
ECONOMIC COMMENTARY
City of Palm Desert
���«��«�c��� � C��r�<-��fi>r{��lf �����xf
.���;
��r�
,
ital Markets Team
The Federal Open Market Committee (FOMC) will meet next on September 17-18.
Many economists believe that the FOMC will announce a scaling back of its
$85 billion-a-month bond-buying program, which has supported markets and key
parts of the U.S. economy. This decision will be made against a backdrop of
rising interest rates; the Syrian conflict; and a federal budget showdown. Janet
Yellen is now the front-runner to replace Ben Bernanke, and lead the FOMC.
She is seen as continuing the "easy money" programs that she helped craft.
Some economists are concerned that the FOMC will eventually lose control
of interest rates as a"great rotation" out of bonds into equities occurs, with
interest rates rising rapidly.
Second-quarter economic numbers numbers were substantially revised, with
GDP estimated at 2.5%, not the earlier 1.7%. This reflected strong exports,
higher corporate profits, and increased consumer spending due to a perceived
rebound in housing. The U.S. housing market is beginning to cool, however, as
higher prices and rising mortgage rates slow demand. The U.S. auto market
had a strong showing with new car sales at a level not seen since 2007. This
reflected a release of pent-up demand, with trade-in vehictes averaging about 11
years old. The labor force participation rate, the number of adults in the labor
force, fell to 63.2%, however, the lowest level since the Carter Administration.
.r�s ��, e.e..�.��: �
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
$
$
$
$
$
220,313 $
220,319 $
6 $
13,559 $
59 $
0.31 %
12
0.00
220,370 $
220,373 $
3 $
14,565 $
59 $
0.32%
26
0.00
218,688 $
218,697 $
9 $
1,885 $
57 $
0.32%
26
0.01
City Treasurer
Paui S. Gibson, C.C.M.T.
Deputy City Treasurer
Thomas W. Jeffrey, J.D., M.B.A.
209,809 $
209,821 $
12 $
(8,277) $
53 $
0.32%
29
0.01
Investment Objectives
The treasurer shall 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 two objectives
have been met.
199,761 $
199,776 $
15 $
(10,437) $
53 $
0.33°/a
29
0.01
197,943
197,962
19
(12,660)
56
0.34%
29
0.02
All data as of August 31, 2013