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March 28, 2017
Long talks CU growth, rate hikes in CUbroadcast
NAFCU Chief Economist and Director of Research Curt Long discussed how credit unions did in 2016 as well as his expectations for future interest rate hikes from the Federal Reserve in a CUbroadcast interview this week.
Long noted that credit union member growth surpassed 4 percent last year and that loan growth exceeded 10 percent for a third consecutive year. However, he said small credit unions continue to be unduly burdened by overregulation.
"We still continue to see a lot of struggles, especially among small credit unions," Long told host Mike Lawson. "It's a tough rate environment and, of course, regulatory environment as well, and those tend to hit smaller institutions the hardest."
Long emphasized NAFCU's continued push for lawmakers and regulators to focus regulation on the real bad actors and to take small credit unions' needs into account during the rulemaking process.
Long also discussed the Federal Open Market Committee's move to raise the federal funds target rate a quarter point to a range of 0.75 to 1 percent in March.
"This is sort of ushering in a new era in terms of this normalization process where they're going to start ramping up the pace," Long said. He predicted the FOMC will meet or even exceed its forecast of three rate hikes this year, due in part to evidence of strengthening inflation.
Lawson and Long also discussed NAFCU's most recentEconomic & CU Monitor survey, which focused on housing issues. Long highlighted the growing trend of millennials entering the housing market, although he said strict underwriting standards and high down payment requirements are hampering credit unions' ability to offer them affordable mortgages.
Long noted that credit union member growth surpassed 4 percent last year and that loan growth exceeded 10 percent for a third consecutive year. However, he said small credit unions continue to be unduly burdened by overregulation.
"We still continue to see a lot of struggles, especially among small credit unions," Long told host Mike Lawson. "It's a tough rate environment and, of course, regulatory environment as well, and those tend to hit smaller institutions the hardest."
Long emphasized NAFCU's continued push for lawmakers and regulators to focus regulation on the real bad actors and to take small credit unions' needs into account during the rulemaking process.
Long also discussed the Federal Open Market Committee's move to raise the federal funds target rate a quarter point to a range of 0.75 to 1 percent in March.
"This is sort of ushering in a new era in terms of this normalization process where they're going to start ramping up the pace," Long said. He predicted the FOMC will meet or even exceed its forecast of three rate hikes this year, due in part to evidence of strengthening inflation.
Lawson and Long also discussed NAFCU's most recentEconomic & CU Monitor survey, which focused on housing issues. Long highlighted the growing trend of millennials entering the housing market, although he said strict underwriting standards and high down payment requirements are hampering credit unions' ability to offer them affordable mortgages.
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