NAFCU Chief Economist Curt Long statement on FOMC’s announcement of no interest-rate increase
WASHINGTON, DC (January 27, 2016) — National Association of Federal Credit Unions (NAFCU) Chief Economist Curt Long issued the following statement in response to the Federal Open Market Committee’s announcement after the conclusion of its two-day meeting today there will be no interest-rate increase.
“As expected, the FOMC decided there would be no change in the federal funds target rate,” said Long. “The committee identified low inflation in the near term, resulting in part from the recent drop in oil prices, as well as weakness abroad and in financial markets as the primary risks to its outlook. While conditions could certainly improve prior to the committee’s next meeting in March, if these issues persist, it will be difficult for the committee to pull the trigger on a rate hike at that time.”
“As things currently stand,” he said, “it seems somewhat doubtful that they will be able to squeeze in four rate hikes this year, as they had previously predicted.”
The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.