Video Reviews Potential for Rise in Interest Rates and Implications for Credit Unions
ALEXANDRIA, Va. (Oct. 19, 2015) – Despite some loss of momentum in the third quarter, forecasters expect the U.S. economy to grow moderately over the next 18 months and for the unemployment rate to continue to decline, according to a new Economic Update video released today by the National Credit Union Administration. If forecasts are accurate, analysts project that the Federal Reserve will raise short-term interest rates later this year or in 2016.
The latest video in the agency’s Economic Update YouTube series is available online here.
For many credit unions, interest rates remains a wildcard and a potential challenge to credit union managers says NCUA Chief Economist Ralph Monaco. And, he notes there is a lot of uncertainty in the interest rate outlook.
“It is important for credit union managers and boards to understand what might happen to net income and balance sheets under a variety of interest rate scenarios,” said Monaco. “Those scenarios might include sharp increases across the maturity spectrum, a rise in short-term rates relative to long-term rates, and no significant changes to either short- or long-term rates.”
The video also reviews recent developments in the housing market and employment sector as well as their potential impact on credit unions.
NCUA’s economic update video series is an ideal information resource for credit union board members, loan officers and management and is available on NCUA’s YouTube channel.
NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, NCUA operates and manages the National Credit Union Share
Insurance Fund, insuring the deposits of account holders in all federal credit unions and the overwhelming majority of
state-chartered credit unions. At MyCreditUnion.gov, NCUA also educates the public on consumer protection and financial literacy issues.