ARLINGTON, Va.–The Federal Reserve will be meeting today and everyone will be watching to see whether it moves on interest rates, which have been near zero for half-a-decade.
NCUA has been cautioning credit unions to prepare for a rate increase, and CUToday.info has been running numerous stories offering analysis on how CUs should price their loans and deposits with a potential increase in the offing.
During NAFCU’s Congressional Caucus in Washington yesterday, at least one congressman predicted the Fed will opt not to increase rates.
Meanwhile, in NAFCU’s Economic and CU Monitor, Chief Economist Curt Long said, “The labor market is still on the mend. Strong job gains have begun to support increased household spending, but wage growth has yet to materialize. However, a strong dollar and low commodity prices are placing downward pressure on inflation. This leaves the Federal Reserve with a difficult decision this month on whether to increase the federal funds rate target. Meanwhile, auto sales continue to top expectations, and the housing market has been strong in 2015, though that may be due in part to buyers locking mortgage rates prior to an anticipated rise next year.”