Reso 2026-070 2026 Q1 OPEB Trust and Pension Trust Investment Report

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QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2026 Multi-Asset Class Management -1.% 0.% 1.% 2.% 3.% 4.% 5.% 6.% Mar-22 Mar-23 Mar-24 Mar-25 Mar-26 Fed Target Rate ECB Target Rate Bank of England Target Rate Bank of Canada Target Rate 30 40 50 60 70 80 90 Mar-22 Mar-23 Mar-24 Mar-25 WHAT WE’RE WATCHING • The Federal Reserve (Fed) held rates steady in the first quarter amid persistent inflation pressures and muted net job creation. Looking ahead, the 2026 dot plot reflects expectations for one rate cut, though the outlook has become more uncertain, as geopolitical developments add complexity to the inflation path. Outside the U.S., the European Central Bank (ECB) and Bank of England (BOE) also held rates steady during the quarter, while markets continue to assess the likelihood of additional policy action in the months ahead. • U.S. consumer sentiment, as measured by the University of Michigan Survey of Consumers, increased in the first two months of the quarter before retreating toward December levels, as higher gasoline prices and financial market volatility weighed on households’ outlook. • The first quarter was marked by an escalation of geopolitical conflict involving Iran, which remains an important risk factor for the global economy. Rising energy and commodity prices have increased uncertainty around the duration and magnitude of inflationary pressures. If disruptions to energy and commodity supply chains persist or intensify, risks to global growth could increase, including a higher probability of recession in energy-importing regions. Global Central Bank Rates Source: Bloomberg. U.S. ISM Manufacturing & Services PMI Source: Bloomberg. 40 42 44 46 48 50 52 54 56 58 60 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26 Manufacturing Services University of Michigan Consumer Sentiment Source: Bloomberg. 2.3 Exhibit A Resolution No. 2026-070 Page 6