SAN DIMAS, Calif. – The Federal Reserve continued its consistent approach to raising rates with another 25 basis point bump. The Fed Funds rate now stands at 3.5%. WesCorp VP of Economic and Market Research Dwight Johnston described the Fed as “slow but relentless” with its rate increases. In its statement, the Fed kept in its “measured” approach term for future rate changes. What was different is the Fed indicated that aggregate demand is strengthening. “They’re watching the retail sales numbers like the rest of us and watching how consumers are still spending,” said Johnston. Johnston said consumers are pulling money from their homes. Freddie Mac’s numbers yesterday showed that for the second quarter 74% of its refinancing loans saw consumers take cash out, to the tune of $59 billion. Johnston believes rates will wind up at 4.25% and then maybe taper off quicker than normal. He said longterm rates have remained steady through all this. Credit unions may get an opportunity to invest further out on the yield curve if those rates rise. Credit unions may have to go out past two years to take advantage, he said.

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

Your access to unlimited content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including and

Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


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 and

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

Copyright © 2023 ALM Global, LLC. All Rights Reserved.