Info Bytes 09.22.22
CIC Info Bytes are frequent, succinct updates that provide educational and engagement opportunities to help your community thrive!
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💰 INTEREST RATES & MONETARY POLICY 💰
Up, Up and Away!
The FOMC bumped rates another 75bps yesterday putting the overnight target lending rate between 3% and 3.25%.
The Dot Plot was revised higher, with FOMC members expecting rates to reach 4.4% this year and 4.6% next year. – Bloomberg
Want to invest your funds in principal-guaranteed securities? The safest place this year has been 4-week Treasuries! What’s your APR?
“Why is anyone buying a 3.50%-ish 30-year Treasury TMUBMUSD30Y ? The only logic that squares the circle is that inflation will overshoot to the downside.” – Jeffrey Gundlach
Keen on taking a vacation? Incredible Dollar strength in part due to a hawkish Fed means that exchange rates are more favorable now than ever before. This trend won't last forever, so make a plan!
Resource Updates
We’ve updated our governance hierarchy diagram to include more information. It pairs well with a glass of whatever you’re drinking and our blog articles.
What doesn’t the diagram explicitly reveal? CIC Board decision-making comes last. Washington State is home to at least two state supreme court cases addressing discretion. Here are some quotes from our Duty of Care page:
Discretion is not reasonably exercised when:
the procedures laid out in the governing documents and relevant statutes are not followed
the information used in the decision-making process is not reasonably accurate
Courts do not owe deference to an association's interpretation of its governing documents, but courts do owe appropriate deference to an association's reasonable discretionary decisions.
Riss suggests that when a [CIC] makes a discretionary decision in a procedurally valid way, courts will not substitute their judgment for that of the association absent a showing of "fraud, dishonesty, or incompetence (i.e., failure to exercise proper care, skill, and diligence). Reasonable care is required."
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A Note About Ukraine
The people of Ukraine are undergoing tremendous displacement from their homes coupled with loss of life, tragedy and suffering. Considering the global landscape can help us gain perspective in our daily lives.
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