Newsroom

Back to the Newsroom
June 19, 2013

FOMC sticks with current policy

June 20, 2013 – As NAFCU anticipated, the Federal Open Market Committee said Wednesday that it was continuing its quantitative easing program and keeping the federal funds target rate at a range of 0 to 0.25 percent – measures that NAFCU Chief Economist David Carrier expects may continue for quite some time.

Carrier said the panel, in a statement issued at the close of its two-day policy setting session, offered "no hint" of a policy change. And despite some confusion in the markets following earlier policy statements, there still was no added clarification from the Fed on just what economic conditions might warrant a change in policy.

"The Fed simply noted that although the economy is gradually improving, the fiscal drag from sequestration isn't helping. So they are standing pat with their accommodative policies, with inflation and unemployment targets that are unlikely to be achieved in 2013," Carrier said. "And it could take much longer than that."

The Fed is prolonging purchases of additional agency mortgage-backed securities at a pace of $40 billion a month. The Fed also stated it will continue to purchase longer-term Treasury securities at a pace of $45 billion per month and maintain its existing policy of reinvesting principle payments and rolling over maturing Treasury securities.

The FOMC, in its statement, said downside risks for the economic outlook and the labor market have diminished. It added:

  • Economic activity has been expanding at a moderate pace.
  • Labor market conditions have improved recently.
  • Household spending and business fixed investment advanced.
  • The housing sector has strengthened.
  • Fiscal policy is restraining economic growth.

Related Resources

Add to Calendar 2024-04-24 14:00:00 2024-04-24 14:00:00 Optimize Liquidity, Maximize Loan Growth: The Network Lending Advantage About The Webinar Join us to learn more about network lending, a cooperative model allowing credit unions to optimize liquidity and achieve loan growth. Discover how credit unions can participate in loan pools with other institutions, allowing them to diversify portfolios, access loans with potentially lower risk and higher yields, and expand lending capacity without necessarily needing a surge in deposits. Delve into how credit unions can pool their resources, set common underwriting and pricing standards, and collectively originate, buy, and sell loans to optimize liquidity management. Hear from your peers about best practices, case studies, and practical strategies to harness the full potential of network lending and how it's helped their credit unions. Don't miss this valuable opportunity to learn how to strengthen your credit union's position in today’s competitive environment.  Key Takeaways: How network lending differs from traditional lending  The benefits of participating in loan pools with other credit unions  How credit unions can set common underwriting and pricing standards and collectively originate, buy and sell loans to optimize liquidity management  Why network lending is critical to loan growth  Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public

Optimize Liquidity, Maximize Loan Growth: The Network Lending Advantage

preferred partner
LendKey
Webinar
Add to Calendar 2024-04-23 14:00:00 2024-04-23 14:00:00 Monitoring the Latest Litigation Risks Credit unions’ operations pose litigation risks, with more of these cases being filed as class action lawsuits. In this Monitoring the Latest Litigation Risks for Credit Unions webinar, you’ll review some of the specific kinds of lawsuits impacting credit unions and what potential claims could be on the horizon. You’ll also examine some options for mitigating risks. Key Takeaways Review the current lawsuit trends. Understand the potential claims risks Explore options for mitigating risks.   Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until April 23, 2025Go to the Online Training Center to access the webinar after purchase »   Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCRMs will recieve 1.0 CEUs for participating in this webinar NCCOs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public

Monitoring the Latest Litigation Risks

Credits: NCCO, NCRM

Webinar

Resiliency In Your Incident Response Plan

Cybersecurity

preferred partner
DefenseStorm
Blog Post

The Bottom Line on Insurance Tracking and Collateral Protection

Strategy

preferred partner
Allied Solutions
Blog Post