August 27, 2021

NAFCU anticipates Fed will provide clarity on monetary policy during annual conference

Federal Reserve Today, the Federal Reserve Bank of Kansas City will host its 2021 Economic Policy Symposium “Macroeconomic Policy in an Uneven Economy” virtually. Participants from credit unions, central banks, and other financial market participants will discuss current economic issues and policy options.

The program’s full agenda can be found here; Federal Reserve Chairman Jerome Powell’s opening remarks will be livestreamed on YouTube at 9:00 a.m. Central.

One area where NAFCU expects to get more information is when the Federal Reserve will begin to taper asset purchases. The July Federal Open Market Committee (FOMC) meeting revealed that despite indicators of spurring economic growth, most of the participants felt the committee’s standard of “substantial further progress” toward the maximum employment goal fell short.

“There is growing pressure for Chair Powell to provide clarity on when and how the Federal Reserve will begin to taper asset purchases. The challenge will be to do so while avoiding signaling that a rate hike is imminent. Failure to do so could lead to market volatility and undermine credibility in the Fed’s average inflation targeting policy,” 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. This annual meeting is one of the many ways NAFCU works to ensure the voices and concerns of our members are heard and addressed.

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 Sept. 17.

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