ONTARIO, Calif.–Deposits declined by $3.2 billion across CUs headquartered in California and Nevada (combined) from June 2022 – June 2023, according to new data released by the California and Nevada leagues.
At the same time, households in the Golden and Silver states continued their “healthy borrowing, providing steady lending and economic growth across both states,” according to the leagues.
“These sturdy loan trends only masquerade the obvious: price inflation on goods and services for working households in a job environment where wage-and-salary gains haven’t completely caught up,” the leagues said in releasing the analysis. “It means credit union members in nearly all socio-economic tiers across California and Nevada will need to take a serious look at their financial situation going into 2024, all while economists and financial experts pin their hopes on a continued disinflationary environment.”
Continued ‘Disinflation’ Needed
Added Robert Eyler, contract economist for the leagues, “We need to see continued disinflation as a result of the Federal Reserve’s policies, as it informs the economy that higher interest rates are working. This is likely to come at a cost, with job losses and a cooling labor market, which policymakers have been waiting for since interest rate hikes began. Lower job levels should eventually cool inflation faster — although recent events in the Middle East may exacerbate fuel costs in the short term.”
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