A strengthening U.S. economy that leads to changes in theFederal Reserve policy regarding cost of funds may mean both goodnews and bad news for America's credit unions.
The financial crisis in 2008 led the Fed to establish anunconventional monetary policy through which the Fed funds rate was lowered tonear zero in hopes of sparking an economic upswing.
In addition, a series of bond buying programs, collectivelyknown as “quantitative easing” was instituted to lower longer-termrates. The Fed's forward guidance linked the policies tounemployment and inflation rates, two economic indicators that havebegun to ease in recent months.
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