CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Credit Union Magazine
    • Buyers' Guide
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Jobs
  • Contact

News

Home » CUNA Research: Consumer Spending Will Slow Due to Interest Rate Hike
Press

CUNA Research: Consumer Spending Will Slow Due to Interest Rate Hike

Federal Reserve is expected to raise rates several times this year

March 16, 2022

FOR IMMEDIATE RELEASE   
March 16, 2022
Washington, DC

Credit Union National Association (CUNA) Senior Economist Dawit Kebede, PhD, issued the following statement following the Federal Reserve meeting today:

“As expected, the Federal Reserve increased the federal funds rate by a quarter basis point today. It also revised its projection for year-end Personal Consumption Expenditure (PCE) inflation from 2.6% in December to 4.3%. Strong demand, enduring supply bottlenecks, and the surge in energy prices due to the war in Ukraine are contributing to inflationary pressure.

“As a result, The Federal Reserve signaled multiple hikes to federal funds rate throughout the year projecting it to reach 1.9% by the end of 2022 - revising its December projection by a full percentage point. This will raise consumers' cost of borrowing and slow down spending. Consumer spending contributes to two-thirds of the gross domestic product (GDP) - the value of all goods and services in the economy. The GDP growth projections will also decrease with the rising federal funds rate.” 

###     

About CUNA:           
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 130 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.

 

CONTACT:          
Deshundra Jefferson 
CUNA Communications 
(202) 809-4081     

Credit Union Magazine: Summer 2023

Summer 2023

Credit Union Magazine’s Summer 2023 issue highlights the lending outlook for the rest of the year, how credit unions leverage fintech companies to boost digital lending, the power of lending partnerships, common Bank Secrecy Act violations, and the shift board members must make when becoming chair.
Digital Edition •  Subscribe

Trending

  • Final week to nominate a 2023 Credit Union Rock Star

  • CUNA to host free webinar on FedNow service strategy June 13

  • Regulators issue AVM proposal, WH addresses appraisal bias efforts

Tweets by CUNA_News

Polls

Do you think ChatGPT will become useful for credit unions?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us