Title
Receive and accept the Treasurer’s Report of Investments for the quarter ending March 31, 2026.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Receive and accept the Treasurer’s Report of Investments for the quarter ending March 31, 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 January 1 through March 31, 2026.
DISCUSSION:
Geopolitical developments have become the primary driver of market sentiment, outweighing underlying U.S. macroeconomic fundamentals. In particular, conflict involving Iran has elevated near-term inflation risk through upward pressure on energy and commodity prices. At the same time, the labor market remains relatively stable, with unemployment holding steady despite minimal net job creation. Consumer spending and business investment continue to support economic activity, although the pace of growth appears to be moderating.
The Federal Reserve maintained the federal funds target range at 3.50% to 3.75% throughout the first quarter. The median “dot plot” continues to reflect a single 25 basis point rate reduction in 2026, though the dispersion of projections indicates a more cautious and uncertain path toward easing. Federal Reserve Chair Jerome Powell noted that elevated geopolitical uncertainty is complicating the policy outlook and the Federal Reserve’s ability to balance its dual mandate of maximum employment and price stability.
As of March 31, 2026, the County of Monterey’s investment portfolio had an amortized book value of $3,311,430,120, invested across 260 individual securities and funds. The portfolio’s par value totaled $3,325,551,610, with a market value of $3,315,690,913, representing approximately 100% of amortized book value. The portfo...
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