A Look at What Newly Released Fed Minutes Reveal - Curt Long NAFCU Chief Economist and VP-Research

Curt will be presenting the state of the economy at our conference in Clearwater Beach from 10/3-6/23

WASHINGTON–Newly released minutes from the Federal Reserve’s most recent meeting shows nearly all of the policymakers supported the decision to continue to slow the pace of interest rate hikes, but also indicated that curbing inflation will remain the “key factor” in how much longer (and how much higher) the rate increases will continue.

The minutes seem to suggest a compromise between those on the Federal Open Market Committee (FOMC) who are worried about a slowing economy and those who are convinced inflation will prove to be persistent, and that the shift to smaller-sized hikes are merited by the inflation data.

Curt Long

"According to the minutes from the FOMC’s January meeting, several members favored a 50-basis point hike,” said NAFCU Chief Economist and VP-Research Curt Long. “Those members pointed to easing financial conditions after inflation peaked. Given the strength of the labor market and the decent economic returns so far in 2023, there are likely to be several more rate hikes in store."

Also Worth Highlighting

Long said other points worth highlighting in the minutes include:

Some participants judged that recent economic data signaled a somewhat higher chance of continued subdued economic growth, with inflation falling over time to the Committee’s longer-run goal of 2%.

Participants agreed that the labor market remained very tight and assessed that labor demand substantially exceeded the supply of available workers.
Participants noted that inflation data received over the past three months showed a welcome reduction in the monthly pace of price increases but stressed that substantially more evidence of progress across a broader range of prices would be required to be confident that inflation was on a sustained downward path, Long stated.

The Conundrum

The central bank's policy rate is currently in the 4.50%-4.75% range. The FOMC is scheduled to next meet March 21-22 meeting. As CUToday.info has reported, surprisingly strong employment data as well as ongoing strong retail sales have put the Fed in a conundrum about how high to push rates and when to back off.

02/22/2023 CUToday

Comments

NCOFCU Newsletter

The Bucket Coach is a financial advice book designed by Fire Services Credit Union, Tronto, Canada. and written exclusively for Fire Fighters It's a practical guide for household financial management, including investments, credit and mortgages, and retirement. Developed with contributions from Fire Fighters," NCOFCU Newsletter : " Kevin Connolly Chief Executive Officer Fire Services Credit Union Phone: 416-440-1294 ext 301 Toll Free: 1-866-833-3285 E-mail: kevin@firecreditunion.ca 1997 Avenue Rd Toronto, ON M5M 4A3

Read Complete Article HERE>»

Sunday Reading - What is the Dow Jones?

What is the Dow Jones? Created in 1896, the Dow Jones Industrial Average is one of the world’s oldest and most widely recognized stock indexes—a measure tracking the stock performance of a selected group of companies ( see most recent data ). Originally designed to track America’s leading industrial firms, the Dow has evolved into a cultural and financial shorthand for the health of the US economy. As of 2025, it measures 30 major companies —like McDonald's, Boeing, and Nike—across sectors such as technology, healthcare, finance, and consumer goods. Unlike most modern indexes, which are weighted by the total value of a company’s shares, the DJIA uses a price-weighted formula —meaning stocks with higher share prices exert more influence, regardless of company size. The DJIA has been updated 59 times since its creation to reflect changes in the US economy ( see ch...

Read Complete Article HERE>»

New from AutoLink

Read Complete Article HERE>»

The Role and Hazards of an Interim Executive

The Role and Hazards of an Interim Executive Leadership transitions are rarely smooth. A change at the top can trigger uncertainty, speculation, and anxiety. Staff worry about their jobs, members wonder about continuity, and boards feel the weight of stewarding the organization through uncertain change. The utilization of an interim executive director is meant to stabilize the organization and allow the board enough space and capacity to find the right successor leader. Here’s a catch: if an interim executive is also a candidate for the successor role, the very purpose of an interim engagement is compromised. With an Interim, there’s always a second wave of anxiety Every leadership transition comes with some anxiety. The staff sometimes don’t know what’s going on. The board is worried about continuity, and members may be worried about joining. One task of an interim is to absorb some of that anxiety and provide reassurance that things are moving forward. But there is al...

Read Complete Article HERE>»

Powell Rejects Any Plan for Fed to Intervene in Secondary Market to Bring Down Rates

Frank Diekmann October 20, 2025 2:22 am No Comments PHILADELPHIA–Federal Reserve Chair Jerome Powell said there are no plans for the central bank to directly intervene in secondary mortgage markets in an attempt to help bring down mortgage rates, an idea some have proposed as a means of addressing the affordability crisis In housing. Jerome Powell Speaking at the National Association for Business Economics conference in Philadelphia, Powell spoke to the Fed’s progress with “quantitative tightening,” that is, its work to reduce the more than $6 trillion of securities it holds on its balance sheet . Read more about the Balance Sheet HERE Those holdings include approximately $2 trillion in mortgage-backed securities (MBS), which are bundles of home loans that are packaged together and sold to investors, usually by middlemen Fannie Mae and Freddie Mac , noted Realtor.com. Rolling Off Balance Sheet As the report noted, the Fed dramatically increased M...

Read Complete Article HERE>»

First-responder Credit Union Newsroom

Search This Blog