August 24, 2022

Fed meets in Jackson Hole for annual conference, likely setting stage for rate hike next month

Federal ReserveTomorrow through Saturday, the Federal Reserve Bank of Kansas City will host its 2022 Economic Policy Symposium, “Reassessing Constraints on the Economy and Policy,” in Jackson Hole, Wyo. Central bankers, policymakers, academics and economists will discuss current economic issues and policy options. Federal Reserve Chairman Jerome Powell’s remarks on Friday will be livestreamed on YouTube at 10:00 a.m. Eastern.    

The July Federal Open Market Committee (FOMC) meeting revealed that the Fed remains concerned about inflation. In their efforts to tighten inflation back to their two percent target, the Fed signaled they were willing to cause a slowdown in the labor market or economic growth.      

"Despite the hawkish stance of the FOMC, market conditions since the most recent committee meeting have eased. Chair Powell will likely look to reassert the firmness of the Fed's commitment to bring inflation back to target, setting the stage for a 75 basis point rate hike next month," said NAFCU Chief Economist and Vice President of Research Curt Long.    

NAFCU is currently seeking feedback to share with Federal Reserve Board Governor Michelle Bowman and senior Federal Reserve staff this December. Member credit unions are encouraged to share their thoughts on key issues to help inform that meeting through NAFCU’s annual survey; responses are due today. The results of the survey will be summarized in NAFCU's Annual Report on Credit Unions, which has previously been referenced by the Treasury Department, and ensure the voices and concerns of our members are heard and addressed.    

NAFCU will closely follow discussions at the 2022 Economic Policy Symposium and share any relevant information for credit unions via NAFCU Today.