Newsroom
FOMC minutes suggest increase in asset purchases to come
According to NAFCU's Curt Long, minutes from the Federal Open Market Committee's (FOMC) November videoconference meeting suggest the committee is "positioning itself for an increase in asset purchases in December" to help sustain economic growth. Members of the committee judged that immediate adjustments to the pace and composition of asset purchases were not necessary; however, circumstances could shift to warrant such adjustments.
"Discussion during the November meeting indicates that the committee sees asset purchases as having successfully calmed Treasury markets in the early stages of the pandemic, and more recently, providing stimulus to the economy," said Long, NAFCU's chief economist and vice president of research. "NAFCU expects the yield curve to remain flat for an extended period, even as the broader economy shows robust improvement next year.”
Of note, some participants noted that households’ balance sheets generally appeared healthy and an unwinding of the large pool of household savings accumulated during the pandemic could provide greater-than-anticipated momentum to consumer spending over the coming months.
However, several participants expressed concern that, in the absence of fiscal support, lower- and moderate-income households might need to reduce their spending sharply when their savings become exhausted.
Other key findings from the minutes released last Wednesday include:
- economic activity thus far had recovered faster than had been expected earlier in the year;
- the current federal funds target rate – held at 0 to 0.25 percent following the committee’s July meeting – would be maintained until members were confident that the economy had weathered recent events and was on track to achieve the committee’s maximum employment and price stability goals; and
- with inflation running persistently below its longer-run goal, participants judged that it would be appropriate to aim to achieve inflation moderately above 2 percent for some time.
The FOMC is expected to meet next Dec. 15-16.
Share This
Related Resources
Add to Calendar 2024-03-26 09:00:00 2024-03-26 09:00:00 Ensuring Safety and Soundness with AI Listen On: Key Takeaways: [03:48] The regulators are very focused on fairness in lending especially when it comes to using AI and outside models. The industry is moving very fast. [08:25] Articulating a business use case and how partnering with a Fintech can support it is the first step in having a successful conversation with your board. [10:30] Talk to your account executive at your Fintech and have them help you overcome objections. [15:01] Plan for oversight. It is not set and forget it. Your regulators are going to want to know how you are overseeing that from a 3rd party risk management standpoint. [15:47] Have a handle on your reserves and capacity for lending and start small and grow slowly. Web NAFCU digital@nafcu.org America/New_York public
Ensuring Safety and Soundness with AI
preferred partner
Upstart
Podcast
Help Ease Your Members' Loan Payment Concerns
Planning, Auto Loans, Research
preferred partner
TruStage
Blog Post
The Value of Risk Management in Cybersecurity
preferred partner
DefenseStorm
Video
Add to Calendar 2024-03-13 14:00:00 2024-03-13 14:00:00 Digital Assets in Credit Unions: What Are the AML Risks? The digital asset boom is upon us. Like it or not, you have to deal with it effectively with your members, credit unions are on the frontlines of crypto adoption. Even the NCUA has been providing more and more guidance on different aspects of digital assets. You need to be prepared. How? By understanding the core basics of digital assets (specifically cryptocurrencies) the risks that it poses to credit unions and how you can be better prepared to handle issues when they arise. In this webinar, Understanding the Digital Assets Boom, you’ll focus on the basics of digital assets, a background of cryptocurrencies and types, the regulations that are established and the proposals that are being considered and how to position yourself to understand all of these components and include them in your day-to-day roles. Key Takeaways Comprehend the basics of digital assets including cryptocurrencies Understand currently established regulations and what the future has in store, specifically in 2024 Identify and remediate issues that arise in your credit union 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 March 13, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCRMs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Digital Assets in Credit Unions: What Are the AML Risks?
Credits: NCCO, NCRM
Webinar
Get daily updates.
Subscribe to NAFCU today.