ALEXANDRIA, Va. (10/20/15)--The U.S. economy lost some momentum in the third quarter of 2015, but forecasters expect moderate growth over the next 18 months, according to National Credit Union Administration Chief Economist Ralph Monaco.
Monaco touched on this and other topics in the agency’s latest Economic Update video on its YouTube channel.
“Looking ahead, forecasters now generally expect the U.S economy will continue to grow over the next 18 months or so, and they look for the unemployment rate to continue to decline,” Monaco said. If that happens, analysts project that the Federal Reserve will raise short-term interest rates either late this year or in 2016.”
Interest rates remain a potential challenge for credit union managers, Monaco added, due to the uncertainty going forward.
“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,” Monaco said. “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.”
Monaco also discusses employment numbers, developments in the housing market and the impact that information might have on credit unions.
This month’s Economic Update video is the first featuring Monaco, who was named NCUA chief economist in September.
Click below to watch the video in its entirety.