Following Decision to Not Change Rates, Fed Chair Weighs In on 4 Key Economic Issues

WASHINGTON–With the Fed having opted to leave rates unchanged at its just-completed September meeting, Chairman Jerome Powel has offered some signals on how the central bank views a number of critical issues and for what might lie ahead.

Jerome Powell

As CUToday.info reported, the Fed has left the target range for the federal funds rate at 5.25% and 5.50%. Some forecasters believe the Fed will raise rates once more this year—with the Fed itself indicating that is likely--while NAFCU Economist Noah Yosif predicted there will be “no further hikes in this cycle, with a rate cut arriving around the middle of next year.”

Four Key Issues

During a press conference held following adjournment of the meeting, Powell, along with a statement issued by the Fed, touched on four key themes, including:

Interest Rates. Powell made clear that as long as the economy is growing at a healthy pace, it would be premature to cut interest rates. By a 12-7 margin, Fed policymakers also expect to raise rates again, most likely this year.
Unemployment. Members of the Fed believe the current strong labor market will last into 2025, which could pose a challenge for efforts to fight inflation, especially if strong hiring leads to big wage increases.
Inflation. During his remarks Powell said progress has been made, but again stressed there is a “long way to go” to bring inflation down to the central bank’s 2% target.
Growth. The Fed is most optimistic when it comes to economic growth, forecasting Q4 GDP growth at 2.1% on an annualized basis, up from 1% at its June meeting. In addition, the Fed has boosted its 2024 GDP expectations.

Comments

Why Auto Lending Is Starting To Stand Out As A Real Threat To CUs

By Ray Birch MILWAUKEE—Auto lending is emerging as one of the biggest areas of risk for credit unions, even as the broader U.S. economy continues to perform better than many expected, according to Bill Handel, chief economist at Raddon, a Fiserv company. Delinquency trends in auto portfolios are now approaching levels last seen during the Great Financial Crisis, Handel said, driven by a combination of high vehicle prices, elevated interest rates and increasing financial pressure on lower-income consumers. “There’s probably still a lot of risk in the auto portfolios,” Handel said. “Our numbers in terms of delinquency behavior in the United States are now rivaling what they were during the Great Financial Crisis.” Economy Holding Up Better Than Expected Despite those pockets of risk, Handel said the broader economy remains surprisingly resilient. “If you look at the U.S. economy, it’s actually performing quite well—probably better than most people would have anticipated,” he said. ...

Read Complete Article HERE>»

When Cooperation Turns To Competition: A Turning Point For The Firefighter Credit Union Movement

By Grant Sheehan For decades, firefighter credit unions have stood as a model of what cooperative finance is meant to be—institutions built not to compete ruthlessly, but to serve a shared mission: supporting the financial well-being of those who risk their lives in service to others. That’s what makes the recent actions of Firefighter First Credit Union so concerning. Firefighter First FCU was not just another participant; it was a founding member of the National Council of Firefighter Credit Unions (NCOFCU). It helped shape the very principles of collaboration, mutual respect, and non-encroachment that have long defined our community. Those principles weren’t accidental; they were intentional safeguards to ensure that firefighter-focused credit unions could grow together, not at each other’s expense. But something has changed. Firefighter First FCU’s decision to pursue a nationwide charter marks a clear shift in direction—from cooperation to direct competition. This isn’t simpl...

Read Complete Article HERE>»

Small Credit Unions Don’t Lack Representation—They Lack Board Education

By Grant Sheehan Let’s be clear— representation for small credit unions is not something new that suddenly needs to be invented. For more than 150 years in Europe and 115 years in the U.S., many of us—along with numerous trade groups representing postal workers, schools, hospitals, the military, first responders, electricians, welders, auto workers, and many other sponsor employee groups—have been actively representing and supporting small credit unions. The mission has always been the same: protect these institutions and ensure they have a voice. The real challenge facing small credit unions has never been a lack of organizations claiming to represent them. The challenge has been engagement and education. Many small credit unions operate with extremely limited resources. Their boards are made up of volunteers who already have full-time careers. Even when scholarships, training opportunities, and conferences are offered, the realities of travel costs, staffing shortages, op...

Read Complete Article HERE>»

With Graham Signaling New Budget Bill, Credit Unions Brace For Tax Debate

By Ray Birch WASHINGTON— Senate Budget Committee Chairman Lindsey Graham’s comments Wednesday that Republicans will “expeditiously move toward creating a second budget reconciliation bill” are giving new shape to what had been a speculative discussion in Washington—and prompting renewed attention within the credit union industry to whether the movement’s federal tax exemption could again surface as lawmakers look for possible offsets. In a post on X, Graham said that after consulting with President Trump, his team and Senate Majority Leader John Thune, the Senate Budget Committee will move quickly on a second reconciliation package focused on “adequate funding to secure our homeland” and support for the military. The remarks are notable because they offer one of the clearest indications yet that a second fast-track budget measure—previously discussed but far from certain—may now be gaining traction. CUToday.info on Wednesday reached out to House Budget Committee Chairman Jodey Arringto...

Read Complete Article HERE>»

The United States at 250: How the Country Has Changed in the Past 50 Years

In July, the United States will celebrate its 250th anniversary. The country’s last major milestone was 50 years ago, at its bicentennial on July 4, 1976. U.S. society has changed profoundly since then. Over the past five decades, the U.S. population has aged significantly, with the percentage of people 65 and older nearly doubling. The country has also become more racially and ethnically diverse, as growing shares of people identify as Asian or Hispanic. And following more than 70 million immigrant arrivals, the percentage of foreign-born people in the population has more than tripled. Americans are also less likely to be married than ever before. Women – who now have far more options outside of the home than they did in 1976 – have contributed to a boom in higher education and helped expand the workforce. And even though many Americans are financially better off than they were 50 years ago, econ...

Read Complete Article HERE>»

Honoring Our Member Credit Unions Ranked Among the Top 100 in 2025

Celebrating Excellence: Honoring Our Member Credit Unions Ranked Among the Top 100 in 2025 Best-performing US credit unions of 2025 At NCOFCU, we take immense pride in the strength, resilience, and impact of our member credit unions. Today, we are thrilled to recognize and celebrate several of our members who have earned a place among the Top 100 Best Performing Credit Unions of 2025 —a testament to their unwavering commitment to service, financial stewardship, and community leadership. This achievement is not just about rankings—it reflects the daily dedication to members, the trust built within communities, and the innovation that continues to drive our movement forward. 🌟 Our Honored Members We proudly congratulate the following institutions for their outstanding performance: #7 – Long Beach Firemen's Credit Union A remarkable top-10 finish that highlights exceptional operational excellence and member value. Long Beach Firemen’s CU continues to set a high bar for perform...

Read Complete Article HERE>»

What Gen Z Is Really Looking For In A Credit Union

Gen Z’s faith in traditional institutions gives credit unions a rich opportunity to serve as a key source of financial guidance. Sponsored Content By Adrenaline, Inc. Credit unions can strengthen loyalty with the influential Generation Z by connecting their brand’s purpose, financial guidance, and in-branch experience. Widely described as digital natives, Gen Z meets many of their everyday banking needs with mobile apps and digital tools across multiple providers. While younger consumers certainly expect seamless digital functionality from their primary financial provider, what they value even more is meaningful advice and trusting relationships. Because beneath Gen Z’s technological savvy is a measurable confidence gap — one that impacts every aspect of their financial lives. According to Adrenaline’s 2026 Gen Z research conducted with Alexander Babbage, 36% of Gen Z say they find financial matters confusing, and one in three report feeling overwhelmed by money...

Read Complete Article HERE>»

Employers should take note, as company culture starts with professional development.

Employees and employers alike may have thought they understood company culture, and likely did until recently. Coming to work, knowing company values, interacting with others are all no brainers when it comes to the driving forces that make up company culture. Buy a seismic shift is occurring on two fronts. One, various generations are working together in multiple industries and two; the pandemic has changed attitudes about where work can occur and how that may or may not affect culture. The Linkedin Global Trends 2022 report says more freedom to work where and when employees want, as well as attention to wellbeing, are important demands employers need to consider. Consider the numbers: when picking a new job, 63% of professionals put work-life balance as the top priority. Sixty percent are interested in compensation and benefits and 40% say the colleagues and culture they will be working with are their top priorities. Employers should take note as company culture starts with profess...

Read Complete Article HERE>»

Credit Unions Look For Answers After NCUA Shake-Up

FAQ on Recent Firing of NCUA Board Members , click here. WASHINGTON—Do Todd Harper and Tanya Otsuka have legal standing to contest their removal from the NCUA board by President Donald Trump? Has any past president taken similar action? Can NCUA continue functioning without a quorum on its board? Is this the first step toward consolidating federal banking regulators? In light of President Trump’s decision to remove Democratic NCUA board members Harper and Otsuka, many in the credit union community have expressed concerns and raised important questions. In response, America’s Credit Unions has prepared a detailed Q&A document addressing the implications of the White House’s actions announced on Wednesday. Below are key takeaways from the document ACU has shared with its members: President Trump may now nominate either one or two new board members to fill these vacant positions. At least one must be from a different political party, as statutorily required by the FCU Act. Or, l...

Read Complete Article HERE>»

One Fed Bank President Wants to See Rates at 3% or Higher by Year-End

James Bullard ST. LOUIS–Federal Reserve Bank of St. Louis President James Bullard said he would like to see the Fed’s benchmark rate increased to at least 3% by year-end 2022 to counter the highest inflation in four decades. Bullard also said he favors shrinking the Fed’s bloated balance sheet. “I would like the committee to get to 3-3.25% on the policy rate in the second half of this year,” Bullard told reporters after a speech at the University of Missouri, Bloomberg reported. “We have to move forthrightly in order to get the policy rate to the right level to deal with the inflation we have got in front of us.” As CUToday.info reported, the Fed raised its benchmark overnight rate by 25 basis points last month to a target range of 0.25% to 0.5%. Bullard, who favored a half-point increase, was the lone dissenter in the 8-1 policy vote. Bloomberg noted forecasts released with their policy decision showed officials expect to raise rates to 1.9% by the end of the year, ac...

Read Complete Article HERE>»

First-responder Credit Union Newsroom

Search This Blog