X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON-As a number of credit union economists had predicted, the Federal Open Market Committee raised the federal funds rate target by a quarter of a percent to 1.25%. “The Committee believes that, even after this action, the stance of monetary policy remains accommodative and, coupled with robust underlying growth in productivity, is providing ongoing support to economic activity,” the FOMC statement read. The monetary policy group noted the continued output expansion and improved labor market. “Although incoming inflation data are somewhat elevated, a portion of the increase in recent months appears to have been due to transitory factors,” the statement continued. It concluded, “With underlying inflation still expected to be relatively low, the Committee believes that policy accommodation can be removed at a pace that is likely to be measured. Nonetheless, the Committee will respond to changes in economic prospects as needed to fulfill its obligation to maintain price stability.” The FOMC is not scheduled to meet in July. NAFCU Senior Economist Jeff Taylor has said he expects the rates to be raised as much as 50 basis points in August.

 

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.