Title
Receive and accept the Treasurer’s Report of Investments for the quarter ending September 30, 2026.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Receive and accept the Treasurer’s Report of Investments for the quarter ending September 30, 2026.
SUMMARY:
Pursuant to Government Code Section 53646(b)(1), the Treasurer may submit a quarterly report of investment activities to the Board of Supervisors. The following discussion and attached exhibits summarize economic and market conditions and document investment activity for the period from July 1 through September 30, 2026.
DISCUSSION:
U.S. economic growth remains resilient, supported by consumer spending and continued investment in artificial intelligence (AI). While labor-market conditions remain generally balanced, hiring momentum has slowed. Core inflation remains elevated, with higher oil prices and rising input costs presenting continued upside risks. AI-related investment may support future productivity growth, although its longer-term effects on employment and inflation remain uncertain.
The Federal Reserve increased its policy rate by 25 basis points to 3.75%-4.00% during September. The September projections indicated that 16 of 18 Federal Open Market Committee participants anticipated at least one additional rate increase before year-end, reflecting continued concern about persistent inflation. Federal Reserve Chair Kevin Warsh emphasized the importance of restoring price stability, while the removal of forward guidance placed greater emphasis on incoming economic data in assessing the future path of monetary policy.
As of September 30, 2026, the County of Monterey’s investment portfolio had an amortized book value of $2,995,198,033 diversified across 244 individual securities and funds. The portfolio’s par value totaled $3,004,644,572 with a market value of $2,962,038,352 representing approximately 99% of amortized book value. The portfolio generated an effectiv...
Click here for full text