WASHINGTON—Members of the Federal Open Market Committee (FOMC) agreed that the labor market had remained strong since the last meeting, with economic activity rising at a moderate rate, according to minutes from the committee's October meeting.
Separately, nine members of Congress are urging USAID to act on reforms they want to see made.
When it comes to the Fed, “the FOMC is satisfied that it has done enough to address the risks to the economy posed by the trade war, slow global growth, and low levels of business investment," said NAFCU Chief Economist and Vice President of Research Curt Long. "Although the Fed signaled a halt to this year’s series of rate cuts following the action at this meeting, a rate hike is not on the horizon."
Additionally, most members believed that a rate cut of 25 basis points would be appropriate, referencing global developments weighing on the economic outlook. Following the October meeting, the committee cut interest rates by 25 basis points, moving the federal funds target rate to a range of 1.5 to 1.75%.
Other Revelations
Long said the latest FOMC minutes also revealed that participants:
- Judged that that the rate cut would be well calibrated to support the outlook of moderate growth, a strong labor market, and inflation near the committee's symmetric 2 percent objective
- Continued to view the downside risks surrounding the economic outlook as elevated
- Generally viewed the economic outlook as positive
The FOMC will next meet Dec. 10 -11; its tentative meeting schedule for 2020 can be viewed here.
USAID Pushed to Complete Procurement Reform Process
Meanwhile, in a letter composed by Rep. Brad Sherman (D-CA) and signed by nine other members of Congress from both parties, the U.S. Agency for International Development (USAID) was urged to complete its procurement reform process in a manner that ensures a fair and substantial proportion of awards and contracts made by USAID are awarded to small, U.S.-based, not-for-profit, and civil-society based organizations, including credit unions.
The legislators delivered the letter to USAID Administrator Mark Green this week, CUNA reported.
CUNA said it—along with the World Council of Credit Unions—has engaged the USAID several times this year, calling for a level playing field for credit unions and other smaller contactors.
“The letter to Administrator Green shows that USAID can leverage the specialized expertise and long-term, sustainable relationships provided through credit unions that will only enhance the mission and goals of USAID,” said CUNA President/CEO Jim Nussle.
Other Signees
In addition to Sherman, the letter was signed by Reps. TJ Cox (D-CA), Julia Brownley (D-CA), Eric Swallwell (D-CA), Richard Neal (D-MA), Mark Pocan (D-WI), Alan Lowenthal (D-CA), Bobby Rush (D-IL), Brian Fitzpatrick (R-PA) and John Curtis (R-UT).
“On behalf of credit unions around the world and the 274 million members we represent, we thank Rep. Sherman for his leadership on this vitally important matter for credit unions,” said World Council of Credit Unions President/CEO Brian Branch. “We are grateful that a bipartisan group of House members believe USAID should make greater use of underutilized partners such as credit unions, that are uniquely situated to assist USAID in addressing the needs of aid recipients and addressing U.S. foreign policy concerns.”