NCUA Chief Economist: “We’ve Entered a New Interest Rate Environment”

New Economic Video Reviews How Recent Developments May Affect Credit Unions

ALEXANDRIA, Va. (Dec. 23, 2015) – The strengthening economy is good for credit unions, according to National Credit Union Administration Chief Economist Ralph Monaco, but there is still uncertainty about the economic outlook and future path of interest rates.

Monaco discussed economic conditions and the possible impact of rising interest rates in NCUA’s latest Economic Update YouTube video, released today and available online here.

“We’ve entered a new interest rate environment, where rising rates, both short- and long-term, are more likely,” Monaco said. “Now is a good time for credit unions to evaluate income and balance sheet changes across a range of potential interest rate scenarios, including one that looks like the Federal Reserve’s projection.”

Credit unions are benefiting from the rise in demand for big-ticket consumer goods, like autos and houses, Monaco said. Auto sales were well above the pre-recession average in the third quarter of 2015. Home sales remain at a relatively high level. Both are an important for credit union lending, accounting for almost 85 percent of the credit union system’s loan portfolio.

 NCUA’s economic update video series is an ideal information resource for credit union board members, loan officers and management and is available on NCUA’s YouTube channel.

IR Press

Share
Published by
IR Press

Recent Posts

Treasury Issues Final Rule Expanding CFIUS Coverage of Real Estate Transactions Around More Than 60 Military Installations

WASHINGTON – Today, the U.S. Department of the Treasury (Treasury), as Chair of the Committee…

5 days ago

U.S. Department of the Treasury’s CDFI Fund and Federal Housing Finance Agency Collaborate to Bolster CDFI Access to Capital

WASHINGTON—Today, the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) and…

5 days ago

Report on U.S. Portfolio Holdings of Foreign Securities at Year-End 2023

Washington – The findings from the annual survey of U.S. portfolio holdings of foreign securities…

6 days ago

READOUT: U.S. Department of the Treasury Hosts Roundtable Discussion on the Financial Sector’s Response to Recent Hurricanes

WASHINGTON – The U.S. Department of the Treasury hosted a roundtable on October 30 with…

6 days ago

READOUT: Sixth Meeting of the Financial Working Group Between the United States and the People’s Republic of China

WASHINGTON – The United States and the People’s Republic of China held the sixth meeting…

6 days ago

Treasury Sanctions Key Members of La Linea, a Group Involved in Trafficking Fentanyl into the United States

WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned…

6 days ago