Throughout 2018, the Fed maintained measured, gradual rate increases to support a strong labor market and price stability. The Target Fed Funds rate is projected to reach 3.00% at the end of 2019 where it’s expected to remain for the next few years. Will organizations be well-positioned to meet their investment objectives in this new interest rate environment? As the Federal Reserve closes in on a neutral position, evaluating different investment options will be critical for setting an optimal cash position and strategy.
Today’s treasury professionals are challenged to develop strategies for managing their organization’s short-term cash over the long haul. In this session, we will explore the impact of a flat rate period and the implications for short-term cash investment options. As the interest rate environment changes, organizations will be required to analyze their short-term cash and cash position differently. We will discuss the current and projected rate environment and how to identify and evaluate the available investment alternatives. We will also review the factors organizations must consider when managing their cash and discuss potential cash-positioning approaches as we enter a new interest rate era.