The Federal Open Market Committee (FOMC) begins its two-day, monetarypolicy-setting meeting today and is expected to release updated projections.
Following October’s rate cut and decision to drop language regarding efforts to act “as appropriate to sustain the expansion,” NAFCU Chief Economist and Vice President of Research Curt Long predicted no further rate changes for this year. The federal funds target rate is currently set at a range of 1.5 to 1.75 percent.
“The hurdle for another rate move will be significantly higher as the Fed assesses the impact of its easing campaign, with the hopes that it can maintain what little ammunition they have in case of a deterioration in the real economy,” said Long in NAFCU’s FOMC Macro Data Flash report after the October meeting.
NAFCU has met with members of the committee throughout the year to advocate on key credit union issues, including CECL and efforts to make payments faster and more secure.
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