HomeMy WebLinkAbout65544 (2)2013
City of Palm Desert
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ECONOMIC COMMENTARY
Deputy City Treasurer
Thomas W. Jeffrey, J.D., M.B.A.
Markets Team
The Federal Open Market Committee (FOMC) met on July 31. No policy
changes were announced. The FOMC did, however, downgrade U.S. economic
performance from "moderate" to "modest." The FOMC also noted that inflation
could pose a risk to U.S. economic performance, if it continued to stay below
2%.
U.S. Gross Domestic Product (GDP) was estimated at 1.7% in 2Q2013, up
from 1.1 % in 1 Q2013. Second-quarter GDP numbers may be weaker than
reported, however. In July, the Commerce Department, for the first time,
decided to include spending on intellectual property from artistic, literary, and
nonprofit activity, in GDP calculations. The addition of a new category of
investment should have resulted in a much higher GDP number than 1.7%.
The House Ways and Means Committee has calculated that since January
2009, the U.S. economy has created approximately 2,170,000 jobs, 87% of
which are part-time. Obamacare is accelerating this trend as employers seek
to avoid providing medical insurance by reclassifying workers as part-time.
A separate analysis has suggested that, on an inflation-adjusted basis, 40%
of U.S. workers currently make less money than a full-time minimum-wage
worker would have made in 1968.
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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)
IEffective Duration
$
$
$
$
$
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
209,809 $
209,821 $
12 $
(8,277) $
53 $
0.32%
29
0.01
Investment Objectives
City Treasurer
Paul S. Gibson, C.C.M.T.
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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%
29
0.01
197,943 $
197,962 $
19 $
(12,660) $
56 $
0.34%
29
0.02
201,340 I
201,384 '
44
(11,127)
52
0.34%
28
0.02
All data as of July 31, 2013