As expected, the Federal Reserve increased interest rates Wednesday—a move that signals confidence in the economy and it won't hurt credit unions, economists said.
“The Fed's go-slow approach means credit unions can expect the economic environment to be broadly supportive of more member engagement and of generally favorable operating results,” said Mike Schenk, CUNA's vice president of economics and statistics.
That doesn't mean that credit unions won't take a hit because of the Fed decision. “More credit unions are apt to feel the pinch of higher market interest rates, but CUNA economists see healthy membership growth, solid loan growth, higher asset quality, and generally favorable earnings results in the coming months,” he said.
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