Low inflation and recent signs of a slowdown in job growth appear to be preventing a Federal Reserve rate hike from taking place anytime soon, and economists said that likely means more of the same for credit unions.
In comments to the World Affairs Council of Philadelphia on June 6, Fed Chair Janet Yellen said although the overall labor market has been positive, inflation is still too low and a June 3 labor report showed a concerning decline in the number of people actively seeking work.
"My overall assessment is that the current stance of monetary policy is generally appropriate, in that it is providing support to the economy by encouraging further labor market improvement that will help return inflation to 2%," she said. "At the same time, I continue to think that the federal funds rate will probably need to rise gradually over time to ensure price stability and maximum sustainable employment in the longer run."
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