Newsroom

FOR IMMEDIATE RELEASE

Washington (March 15, 2017) - National Association of Federally-Insured Credit Unions (NAFCU)Chief Economist Curt Long issued the following statement today in response to the Federal Reserve's announcement of a quarter-point increase in the federal funds target rate to a range of 0.75 to 1 percent. The decision to raise rates was made during a two-day meeting of the Federal Open Market Committee (FOMC).

"As anticipated, the FOMC went forward with the first rate hike of 2017," said Long. "Given that inflation is rising and approaching the Fed's 2 percent target, Fed officials had little choice but to raise rates.

"Chair Janet Yellen has indicated that more rate hikes are on the way later this year."

The committee's revised projections are three quarter-point rate hikes in 2017 (including the one announced today), three in 2018 and three to four in 2019. The FOMC will meet again May 2-3.

The FOMC last raised the federalfundstarget rate to a range of 0.5 to 0.75 percent last December.

The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation's federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go towww.nafcu.orgor @NAFCU on Twitter.

Falen Taylor
ftaylor@nafcu.org