WASHINGTON–When the Federal Reserve’s Open Market Committee concludes its two-day meeting today it will almost certainly announce another increase in the Fed Funds rate of 75 basis points, according to numerous analysts.
The hawkish stance is expected to continue into 2023 with rates likely reaching 5%, as the Fed looks to put a lid on inflation.
Most analysts and economists expect the ongoing rate increases to push the country into a recession, and that includes CUNA.
As CUToday.info reported here, CUNA is now forecasting a recession for early 2023, in large part due to the rate increases.
CUNA Senior Economist Mike Schenk said he expects the Fed Funds rate to increase to 5% next year as the Fed continues to raise rates. With lending at credit unions well above forecasts in 2022, CUNA is projecting rising rates will help cool lending growth to 7% in 2023, with savings projected to grow 6%.
Those factors will contribute to a situation some credit unions are already facing: liquidity pressures, he added.
CUToday.info will have coverage of the rate announcement later today.
The Very Best in CU Reporting. Every Morning. At a Price Every CFO Will Love
Don’t forget to check your Spam/Junk email folder if you haven’t been receiving your free, popular and daily CUToday.info news headlines.
And if you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time.
CUToday.info has received very positive response from readers following the move to an improved provider of the daily headlines, but many also noted they did need to go to their Spam/Junk folder and mark it as safe.
The new email solution has not only improved every reader’s delivery experience, but it also features a fresh, new format that is easy to read, especially on mobile devices.
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com.