December 10, 2019

No rate change expected as FOMC begins final policy meeting of 2019

moneyThe Federal Open Market Committee (FOMC) begins its two-day, monetary policy-setting meeting today and is expected to release updated projections.

Following October's rate cut and decision to drop language regarding efforts to act "as appropriate to sustain the expansion," NAFCU Chief Economist and Vice President of Research Curt Long predicted no further rate changes for this year. The federal funds target rate is currently set at a range of 1.5 to 1.75 percent.

"The hurdle for another rate move will be significantly higher as the Fed assesses the impact of its easing campaign, with the hopes that it can maintain what little ammunition they have in case of a deterioration in the real economy," said Long in NAFCU's FOMC Macro Data Flash report after the October meeting.

NAFCU has met with members of the committee throughout the year to advocate on key credit union issues, including CECL and efforts to make payments faster and more secure.

Last month, members of the NAFCU Board of Directors sat down at the Federal Reserve with Board Governor Michelle Bowman to review various economic and regulatory trends affecting credit unions as outlined in NAFCU's annual Report on Credit Unions – now available for download.

Additionally, NAFCU's Research Team connected representatives from member credit unions with Federal Reserve Banks in six meetings nationwide.

The FOMC will next meet Jan. 28-29, 2020; its tentative meeting schedule for 2020 can be viewed here. Stay tuned to NAFCU Today for a recap of the meeting.