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.
The National Credit Union Administration has finalized a rule to improve board and executive succession planning within the credit union industry. This strategic move aims to curb the trend of mergers driven by technological stagnation and poor succession strategies, ensuring more credit unions maintain their independence and enhance their technological capabilities. By Ken McCarthy, Manager of marketing communications at Tyfone Credit unions are merging out of existence because of an inability to invest in technology, the National Credit Union Administration Board wrote when introducing its now finalized rule on board succession planning. The regulator now requires credit unions to establish succession planning for critical positions in their organizations. But it’s likely to have even wider effects, such as preserving more independent charters and shaking up the perspectives of those on credit union boards. “Voluntary mergers can be used to create economies of scale to offer more or ...
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