CUNA Economics: ‘The time to act is now’

FOR IMMEDIATE RELEASE
May 3, 2023
Washington, D.C.

CUNA Chief Economist Mike Schenk issued the following statement following the Federal Reserve meeting Wednesday:

"The Federal Reserve, as expected, raised its benchmark Federal Funds interest rate by 25 basis points at its Wednesday meeting – pushing the overnight rate above 5% for the first time in over 15 years. The move represents the tenth consecutive increase since March 2022 – but the Federal Reserve Open Market Committee’s narrative suggests policymakers are inclined to pause on any additional hikes in the near future.   

“Inflation (by almost every measure) is headed down and the declines have been fairly steady over the past nine months. While inflation remains well above the Fed’s 2.0% target, the combination of a modestly weaker labor market recently, the lag effects of monetary policy changes, and a substantially weaker banking sector -- with much tighter underwriting standards -- should more obviously push price changes toward the Fed’s goal. 

“Consumers are likely to more obviously feel the pinch of these changes in the coming months. The Fed’s own estimates suggest that close to 1.5 million workers will be jobless when all is said and done. 

“The challenges which many more average Americans are likely to face suggest the time to act is now: Starting or adding to a rainy-day fund and reaching out to have meaningful conversations with trusted advisors such as professionals in the nations not-for-profit, member-owned credit unions can go a long way in improving financial well-being by building reliance.” 

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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.