Treasurer Reports 3.93% Year-To-Date Rate Amid Federal Reserve Speculation

The Board of Ada County Commissioners convened for an open business meeting on August 12, 2025, where key financial updates and market conditions were discussed. The meeting began with a review of the July financial report, clarifying that it was not to be confused with the June report.

The treasurer reported a year-to-date interest rate of 3.93%, indicating a stable performance of the county's investment portfolio. For the month, total interest earned was $880,000, contributing to a cumulative total of approximately $10 million for the fiscal year, aligning with the goal of generating about $1 million monthly. There were no maturities or purchases in the portfolio during this period, maintaining its current state.

Market conditions were a significant focus of the discussion. The Federal Reserve recently held a meeting where it decided to keep interest rates steady, a decision that followed a week of fluctuating market activity. The treasurer noted that the upcoming jobs report had shown disappointing figures, which could influence future Federal Reserve decisions. The Fed typically does not meet in August, with the next meeting scheduled for September, where a potential 25 basis point cut in interest rates is anticipated due to the revised job numbers.

Inflation remains a concern, with recent Consumer Price Index (CPI) figures slightly exceeding expectations. The treasurer highlighted the dual mandate of the Federal Reserve, balancing joblessness and inflation, which are currently moving in opposite directions. This situation may prompt an emergency meeting if economic conditions worsen.

The treasurer concluded by emphasizing the importance of monitoring the portfolio amidst high interest rates, which, while beneficial for investments, pose challenges for residents facing increased borrowing costs. The meeting wrapped up with a commitment to keep an eye on economic data in the coming weeks to inform future decisions.