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Treasurer says Fed cut opened short-term investment opportunities
Summary
Comal County Treasurer reported that the Federal Reserve's unexpected 50-basis-point cut changed short-term yields, allowing reinvestment of called investments into shorter durations and noting two-year investments are now yielding in the high threes. The monthly report for August was accepted by the court.
Comal County Treasurer Couch presented the monthly report through Aug. 31 and explained how recent federal rate changes are affecting county investments. She told the court that the federal funds rate dropped 50 basis points and that some investments are being called, creating opportunities to buy short-term instruments.
"Recapping last week, the feds, dropped the fed funds rate 50 basis point, not 25 basis points like they had everyone believing. So, what that means for us is that this morning, a 2 year investment is now in the high threes," the treasurer said. The court approved acceptance of the Treasurer's monthly report.
