Skip to main content

Federal Reserve Increases Rates

Information received since the Federal Open Market Committee met in January indicates that the labor market has continued to strengthen and that economic activity has been rising at a moderate rate. Job gains have been strong in recent months, and the unemployment rate has stayed low. Recent data suggest that growth rates of household spending and business fixed investment have moderated from their strong fourth-quarter readings. On a 12-month basis, both overall inflation and inflation for items other than food and energy have continued to run below 2 percent. Market-based measures of inflation compensation have increased in recent months but remain low; survey-based measures of longer-term inflation expectations are little changed, on balance.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The economic outlook has strengthened in recent months. The Committee expects that, with further gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace in the medium term and labor market conditions will remain strong. Inflation on a 12-month basis is expected to move up in coming months and to stabilize around the Committee's 2 percent objective over the medium term. Near-term risks to the economic outlook appear roughly balanced, but the Committee is monitoring inflation developments closely.

In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 1-1/2 to 1-3/4 percent. The stance of monetary policy remains accommodative, thereby supporting strong labor market conditions and a sustained return to 2 percent inflation.

In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments. The Committee will carefully monitor actual and expected inflation developments relative to its symmetric inflation goal. The Committee expects that economic conditions will evolve in a manner that will warrant further gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run. However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.

Voting for the FOMC monetary policy action were Jerome H. Powell, Chairman; William C. Dudley, Vice Chairman; Thomas I. Barkin; Raphael W. Bostic; Lael Brainard; Loretta J. Mester; Randal K. Quarles; and John C. Williams.

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

Sunday Reading - Social Security 101

  Social Studies   Social Security 101 The US Social Security   system is best known for providing income to the nation’s elderly population based on the amount of money they earned during their working years.   The Social Security Act of 1935 established the program  amid the worsening poverty crisis that older Americans faced during the Great Depression. By 1934, more than half of those aged 65 and older lacked sufficient income to cover their basic living expenses.    Today, most US workers are familiar with seeing a percentage of their pretax income deducted from their paychecks and contributed to the nation’s Social Security trust funds. Starting a...
Post a Comment
Read Complete Article HERE>»

Dolphin Debit Drives Efficiency

  Contact Us   4k Surcharge-Free ATMs for Free   Dolphin Debit Access | 1340 Rayford Rd | Spring, TX 77386 . Joe Woods, CUDE  | SVP, Marketing & Partnerships Dolphin Debit Access, LLC | A Euronet Company 1340 Rayford Park Rd., Spring, TX 77386 (M) 614-378-0367   www.dolphindebit.com ================================================= Remember, you're not alone with  NCOFCU.org Join/Upgrade Check out some of NCOFCU's additional features: First Responder Credit Union Academy Financial Literacy Podcasts YouTube Mini's Blog Job Board
Post a Comment
Read Complete Article HERE>»

“The CU Teller of the Future”:

  “The CU Teller of the Future” : Credit union tellers will continue to play an important role, but their work will shift from routine transactions to relationship-driven financial guidance. Technology will handle more basic tasks, freeing tellers to focus on personalized service, financial coaching, and member trust. What Future Tellers Will Focus On The teller of the future will deliver member-centric, personalized experiences by anticipating needs, offering proactive guidance, and explaining financial products in simple, supportive ways. They’ll need to be comfortable working across multiple channels —in person, mobile, chat, and video—while keeping service seamless. A security-first mindset will be essential, including fraud awareness and helping members practice safe digital habits. Tellers will also play a growing role in financial wellness , assisting with budgeting, saving, debt management, and long-term planning. Strong knowledge of compliance and documentation will...
Post a Comment
Read Complete Article HERE>»

'Tis the season for fraud! Teller questions if member fraud is suspected.

  When a credit union employee suspects a member may be subject to fraud, they should initiate a careful conversation focusing on the nature of the transaction and external influences. The goal is to help the member identify red flags without the employee asking for sensitive personal information that the credit union should already have on file.  Initial Verification Questions    .pdf Before discussing the specifics of the suspicious activity, the employee should confirm the member's identity in accordance with established internal protocols.  Questions About the Transaction/Activity If the member confirms they are conducting a suspicious transaction (e.g., a large wire transfer or purchase of gift cards ), the employee should ask questions to help the member pause and think critically:  "What is the purpose of this transaction?" "Do you personally know the person or business you are sending money to?" "Have you ever met the...
Post a Comment
Read Complete Article HERE>»

‘No One Wants a New Car Now.’ WSJ Columnist Offers His Take on Why

NEW YORK–That new car smell isn’t quite the intoxicating perfume it has been for a long time, according to one automotive analyst. Under the headline, “No One Wants a New Car Now. Here’s Why,” the Wall Street Journal’s well-regarded automotive columnist, Dan Neal, observed that “America’s fleet of cars and trucks is also getting long in the tooth.” Neal’s reference was to a study by S&P Global Mobility that found the average age of vehicles in the U.S. is now 12.6 years, up more than 14 months since 2014, with the average age of passenger cars hitting14 years. All-Time High Burden “In the past, the average-age statistic was taken as a sign of transportation’s burden on household budgets,” Neal wrote. “Those burdens remain near all-time hig...
Post a Comment
Read Complete Article HERE>»

Advice On Winning Over Gen Z In ’25

NEW YORK—As 2025 approaches the close of Q1, how can credit unions win over Gen Z? By tailoring credit rewards for a digital-first generation, a new report recommends. Gen Z is reshaping the workforce and redefining financial behaviors. As of 2024, this generation is poised to surpass Baby Boomers in workforce size and will make up 30% of the workforce by 2030. This rapid growth presents a major opportunity for financial institutions to tap into a younger, digitally native audience with distinct spending habits and financial needs, emphasized a GlobalData report authored by Zachary Johnson, specialist, campaign execution & strategy, financial services at VDX.tv. “Unlike previous generations, Gen Z’s economic journey has been shaped by inflation and delayed career starts due to the pandemic and skyrocketing living costs. These factors have made them highly dependent on credit, with Gen Zers being 23% more likely to own a credit card than Millennials at the same age, and carrying...
Post a Comment
Read Complete Article HERE>»

IRS Issues Ruling on Federal Credit Unions and COVID Credit

WASHINGTON–The Internal Revenue Service has issued a ruling that credit unions can receive a 2021 COVID Credit, but not 2020. In other words, federally chartered CUs can’t claim the employee retention credit for periods in 2020 but can do so for periods in 2021, because later amendments to the terms of the credit made them eligible, according to the IRS. Specifically, FCUs can’t claim the credit for wages paid after March 12, 2020, and before Jan. 1, 2021. The ruling was issued by the IRS Office of Chief Counsel in a newly released legal  memorandum . According to the IRS, FCUs are able to claim the credit for wages paid after Dec. 31, 2020, and before Oct. 1, 2021, the IRS said. The Employee Retention Credit (ERC) – sometimes called the Empl...
Post a Comment
Read Complete Article HERE>»

Three-Quarters of Consumers Familiar With CUs, But Just 1 in 4 Says a CU is PFI, & Other New Findings

WASHINGTON– More than three-quarters of U.S. consumers said they are familiar with credit unions and hold a positive impression, yet just one-in-four banks primarily with a credit union, a new survey has found. The 2026 Credit Union Consumer Perception Report from  CUCollaborate  surveyed 1,000 consumers across the U.S. in December 2025 to gauge their opinions on credit unions. It further found early 70% describe credit unions as trustworthy, and a majority recognize their advantages in fees and rates compared to traditional banks.  But positive sentiment is in decline with younger bankers, according to CUCollaborate. Gen Z consumers represented a sharp shift in credit union perception from older generations, the company said, noting that among those respondents, 36% indicated they had only heard the term “credit union” without having a deeper understanding or had never heard of the term at all.  Some “44% said they were somewhat familiar with credit unions, and a me...
Post a Comment
Read Complete Article HERE>»

Small credit union closures and mergers.

NCOFCU Podcast on the loss of small creditunions. Grant Sheehan CCUE | CEO-NCOFCU examines the rapid decline of small credit unions, why each closure matters to communities, and the threat this trend poses to the cooperative identity and tax protections of the movement. The episode explores practical solutions: larger credit unions acting as stewards, collaboration through shared resources and technology, and the advocacy work of the National Council of Firefighter Credit Unions to amplify every credit union's voice. Listen for a call to action on preserving community-focused financial cooperatives and strengthening the future of the credit union movement. Be sure to visit NCOFCU's "First Responders Credit Unions Academy" for your continued credit union education and certification in meeting N C U A’s requirements.  ================================================= Remember, you're not alone with  NCOFCU.org Join/Upgrade Check out some of NCOFCU's additional f...
Post a Comment
Read Complete Article HERE>»