WASHINGTON—The Federal Open Market Committee (FOMC) decision earlier this week to maintain the federal funds target rate at its current range of 0% to 0.25% is an acknowledgment the economic recovery has stalled in recent months due to increased COVID-19 cases, according to one economist.
"While there was a reference to the progress on vaccine distribution and its potential to alter the path of economy, there was no indication that a change in asset purchase volume is anywhere in view,” said NAFCU Chief Economist and Vice President of Research Curt Long.
As it has in its recent meetings, the FOMC again issued a statement that the Fed is "committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals."
During the meeting, the committee also unanimously reaffirmed its "Statement of Longer-Run Goals and Monetary Policy Strategy," originally adopted in August 2020 following a review of monetary policy strategy, tools, and communications practices.
Long said the new strategy framework seeks to better reflect economic changes and monetary policy approaches. Throughout the coronavirus pandemic, the Fed has made clear its intention to use its tools to their fullest potential until the economic recovery is well underway and Long previously said the statement "looks to avoid the mistakes of the past."
The FOMC is expected to next meet March 16-17. Its tentative meeting schedule for 2021 can be viewed here.
Credit unions spend enormous amounts of time, energy, and marketing dollars trying to acquire new members. But many institutions — especially sponsor-based first responder credit unions — are sitting on one of the most valuable growth opportunities already inside their existing membership base. The joint owner population. Every day, firefighters, police officers, EMTs, dispatchers, and other first responders join credit unions through sponsor relationships. During account opening, spouses or partners are often added as joint owners for convenience. They help manage the household finances. They use the debit card. They log into online banking. They interact with the credit union regularly. Yet in many cases, they never actually become full member-owners of the cooperative. They are connected to the institution — but not fully part of it. And that creates a major strategic opportunity. Why Joint Owner Conversion Matters For sponsor-based credit unions, converting joint owners into full m...
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