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This week: NAFCU eyes FOMC rate hike; Lawmakers focused on budget
Both the House and Senate are in session, with more hearings scheduled to review President Joe Biden’s 2024 budget proposal. Lawmakers are also expected to hold hearings in the coming weeks on recent bank failures and the state of the U.S. financial system in the aftermath – House Financial Services Chairman Patrick McHenry, R-N.C., announced Friday the first committee hearing in the issue will be held March 29. McHenry and Ranking Member Maxine Waters, D-Calif., also sent a letter to the Government Accountability Office (GAO) calling on the office to begin a study and an investigation into the Silicon Valley Bank and Signature Bank collapses. NAFCU, as well as the NCUA, has continued to reiterate that these were not systemic issues and that the credit union industry remains strong.
Of note, the Senate Small Business Committee will hear from Small Business Administration (SBA) Administrator Isabella Casillas Guzman Wednesday afternoon, with the House Small Business Committee scheduled to do their own SBA oversight hearing Thursday afternoon. NAFCU is currently engaged with the SBA as it considers changes to several of its loan programs, warning that proposed changes and allowing fintechs greater access to make SBA-guaranteed loans could introduce risks and increase fraud.
Biden’s budget proposal authorizes $58 billion for lending through the SBA’s flagship 7(a) loan guarantee, 504 loan, Small Business Investment Company (SBIC), and Microloan programs in an effort to address the need for greater access to affordable capital, especially in underserved communities. The Senate Banking Committee will also hold a business meeting Wednesday prior to Guzman’s testimony to consider the nomination of Dilawar Syed for SBA deputy administrator.
NAFCU will also be watching the Federal Open Market Committee’s March meeting, which begins tomorrow. Recent economic data and bank failures have complicated expectations as to what level the committee will decide to increase rates. NAFCU’s research team will provide insights at the conclusion of the meeting; additional economic analyses can be found on the association’s website.
Also happening this week:
- today, NAFCU has a free webinar available to help credit unions evaluate their institution’s liquidity and other factors in the wake of the Silicon Valley Bank and Signature Bank collapses;
- tomorrow, NAFCU’s Legislative Committee meets to discuss recent efforts on Capitol Hill (credit unions are encouraged to visit the association’s Grassroots Action Center to take action on key issues, including interchange and credit union regulatory relief); and
- tomorrow, NAFCU’s second-sold out conference of the year – Strategic Growth Conference – begins in Nashville. Attendees will learn leading strategies and real-world examples for driving growth, staying relevant now and in the future, and outperforming competition. Review the agenda, and check out the rest of NAFCU’s 2023 conference lineup before they sellout.
Stay tuned to NAFCU Today for the latest out of Washington.