ALEXANDRIA, Va. (3/28/16)--Moderate growth of the U.S. economy combined with job gains and the decline in the unemployment rate should lead to moderate growth in the economy, National Credit Union Administration Chief Economist Ralph Monaco said in the agency’s latest economic update. In the video, available below and on the agency’s YouTube channel, Monaco has mostly positive predictions for credit unions.
“For credit unions, the outlook is good news,” he said. “It suggests continued solid loan growth and relatively low credit risk. It points to rising deposits and continued membership gains.”
However, some regions are likely to face challenges for the balance of this year, he added. For example, employment was down compared with a year earlier in states with considerable ties either to the oil industry or to other industries that support oil production.
Credit unions in those areas are more likely to see “weakening loan demand, increases in delinquency and slower deposit and membership growth,” Monaco said.
The video also reviews recent Federal Reserve policy moves, suggesting what they might mean for the outlook for interest rates and how they might affect credit unions this year.