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FOMC gears up for another rate hike
The Federal Open Market Committee (FOMC) starts their November meeting today where NAFCU Vice President of Research and Chief Economist Curt Long expects the Fed to raise rates another 75 basis points, bringing the Federal Funds Rate to a range of 3.75% to 4%. Prior to this year’s rate hikes, the FOMC had not raised rates since 2018.
Notably, Federal Reserve Vice Chair Lael Brainard in early October spoke at a Fed-organized research conference at the Federal Reserve Bank of New York, where she suggested she wants to slow down rate hikes and find a rate that will gradually bring inflation back to the Fed’s target of two percent.
Brainard also noted that “it will take time for the full effect of tighter financial conditions to work through different sectors and to bring down inflation,” alluding to a potential slowdown of rate hikes to allow the Fed’s previous tightening to take effect first.
However, the Fed remains a unified front for now, with another rate increase expected in December.
NAFCU will continue to update credit unions on actions from the Federal Reserve via NAFCU Today.