Newsroom
Fed cuts rates again, predicts stronger economic growth
As anticipated, the Federal Open Market Committee (FOMC) ended its two-day monetary-policy setting meeting with a 25 basis point rate cut – the second of the year. NAFCU Chief Economist and Vice President of Research Curt Long said given the split opinions on the committee, NAFCU doesn't expect any more rate changes this year.
"Today's widely-expected rate cut has everyone looking to the fourth quarter," Long said. "The committee was nearly evenly divided among those expecting a hike, a cut, or no changes to rates between now and the end of the year. This three-way splintering was also evident in today’s vote, with two dissents from voters who wanted no action, and another dissent from a member who preferred a 50 basis-point cut.
"NAFCU's expectation is that the recent run of healthy economic data will continue, resulting in no further rate moves this year," Long added.
In its decision, the committee cited "implications of global developments for the economic outlook as well as muted inflation pressures" as the reasoning behind its rate cut. It also noted solid job growth, low unemployment, and rising household spending; however, business investments and exports have weakened.
The committee also released updated projections that revealed the members have more optimistic expectations for growth, with its GDP projection rising from 2.1 percent in June to 2.2 percent. The inflation projections remained unchanged; current inflation remains near its symmetric 2 percent objective.
More on the meeting's outcomes can be found in NAFCU's FOMC Macro Data Flash report.
The FOMC will next meet Oct. 29-30; its tentative meeting schedule for 2020 is now available.
Share This
Related Resources
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
Add to Calendar 2024-04-15 09:00:00 2024-04-15 09:00:00 Mergers and Acquisitions: Unifying Two Different Executive Total Compensation and Benefits Programs Listen On: Key Takeaways: [03:50] With the merger of a smaller credit union into a larger one you are really only dealing with integrating staff into the larger credit union. [05:53] When working with a merger of equals we start with a deep dive into the executive compensation and benefits of each organization. [09:09] If your current executive benefits provider doesn’t conduct regular plan evaluations, consider having a plan audit anyway. [13:46] Don’t overpay for these things if you don’t have to. When you have more options available that means the cost is more appropriate. [17:11] It is in a unified organization’s best interest to do tier timelines where we look at your top executives who are critical to the unified organization’s success today and then slowly add in the next levels. Web NAFCU digital@nafcu.org America/New_York public
Mergers and Acquisitions: Unifying Two Different Executive Total Compensation and Benefits Programs
preferred partner
Gallagher
Podcast
Get daily updates.
Subscribe to NAFCU today.