Newsroom
FOMC minutes stress debt ceiling, impacts to broader economy
The Federal Open Market Committee (FOMC) released minutes from its May meeting Wednesday. The minutes showed economic activity expanded at a modest pace in the first quarter, but participants stressed the importance of raising the debt ceiling in a timely manner to avoid the risk of severely damaging the financial system and broader economy.
“The FOMC minutes devoted substantial space to the debt ceiling impasse and the potential ramifications of anything short of a clean resolution,” said NAFCU Chief Economist and Vice President of Research Curt Long. “As far as the economy is concerned, even the Fed will have to content itself with playing second fiddle to Congress for the time being. It is likely the FOMC will hold rates steady at the next meeting, with the debate shaping up as to whether that constitutes a momentary skip or longer-term pause.”
Participants also judged that stress in the banking sector would likely induce banks to tighten lending standards more than they would have in response to higher interest rates alone. There was also a general expression of uncertainty about how much more policy tightening may be appropriate at this time. Several participants noted that if the economy evolved along the lines of their current outlooks, then further policy firming after this meeting may not be necessary.
More insights can be found in NAFCU’s Macro Data Flash reports. The FOMC will next meet June 13-14.
Share This
Related Resources
Add to Calendar 2024-06-26 14:00:00 2024-06-26 14:00:00 Gallagher Executive Compensation and Benefits Survey About the Webinar The webinar will share trends in executive pay increases, annual bonuses, and nonqualified benefit plans. Learn how to use the data charts as well as make this data actionable in order to improve your retention strategy. You’ll hear directly from the survey project manager on how to maximize the data points to gain a competitive edge in the market. Key findings on: Total compensation by asset size Nonqualified benefit plans Bonus targets and metrics Prerequisites Demographics Board expenses Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public
Gallagher Executive Compensation and Benefits Survey
preferred partner
Gallagher
Webinar
AI in Action: Redefining Disaster Preparedness and Financial Security
Strategy
preferred partner
Allied Solutions
Blog Post
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 2024 Mid-Year Fraud Review Listen On: Key Takeaways: [01:16] Check fraud continues to be rampant across the country. Card fraud is affecting everyone. [04:31] Counterfeit US passport cards are just another new toolbox in the bad actors’ toolbox. [07:21] Blocking the fallback is the only way to defeat counterfeit cards. [11:17] The best way is constant education to your members in as many channels as you can. [13:02] We are still seeing overdraft lawsuits. Make sure the programming you have at your credit union matches what you have displayed for the members. Web NAFCU digital@nafcu.org America/New_York public
2024 Mid-Year Fraud Review
Strategy & Growth, Consumer Lending
preferred partner
Allied Solutions
Podcast
Get daily updates.
Subscribe to NAFCU today.