CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • 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
  • Contact

News

Home » CUNA Research: Fed raises rates in line with expectations
Policy & Issues

CUNA Research: Fed raises rates in line with expectations

July 27, 2022
Dawit Kebede

CUNA Senior Economist Dawit Kebede issued the following statement following the Federal Reserve meeting today:

“The Federal Reserve Open Market Committee (FOMC) increased the federal funds rate by 75 basis points, in line with consensus expectation, as inflation remains a challenge to the economy. This raises the target range to 2.25% to 2.50%, which is considered neutral, from its near zero stimulative level in March. The FOMC also announces that it anticipates more increases in future meetings to bring inflation down to its 2 percent goal.  

“This indicates that the Fed is committed to bringing price increases under control despite slowing spending and production. The war in Ukraine and pandemic-induced supply constraints are two major reasons behind the record inflation rate whose influence on the economy cannot be altered by monetary policy.  

“However, further rate increases and quantitative tightening will be restrictive and affect consumer demand because it raises the cost of borrowing. This reduction in consumer demand increases the likelihood of a recession in the next year as it accounts for two-thirds of the economy.”

Credit Union Magazine: Spring 2023

Spring 2023

Credit Union Magazine’s Spring 2023 issue features the 2023 Credit Union Heroes and examines CUNA-League advocacy priorities, board leadership, the impact of financial well-being efforts, fee-related compliance issues, predictions for the year ahead, and more.
Digital Edition •  Subscribe

Trending

  • Compliance: FinCEN issues issue BOI reporting guidance

  • Bill would establish ‘appropriate compliance timeline’ for section 1071

  • CUNA Mascot Madness: One semifinal set; Vote for the best in the West

Tweets by CUNA_News

Polls

CUNA Mascot Madness: Which South Region mascot is your favorite?

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