WASHINGTON - (03/22/05) -- The Federal Reserve is expected tocontinue it strategy aimed at tamping inflation by raising thetarget for short-term interest rates, the overnight Fed Funds rate,again Tuesday. Jeff Taylor, a economist for NAFCU, predicted theFed will add another 25 basis points to the benchmark rate--itsseventh 25 bps hike in the past year--pushing the target rate to2.75%. The Fed-watcher said he believes the Fed will continue toadd 25 bps to the short-term rate at the May and June meeting ofits Open Market Committee, pushing the rate to 3.25%. "Then they'regoing to kind of take a look at things and see where we are, interms of inflation and economic growth," Taylor told The CreditUnion Journal. The Fed's action has boosted average rates onshort-term credit union loans, like adjustable-rate mortgages, homeequity loans and credit card loans ,by between 40 bps and 100 bps(1%) over the last year, according to DataTrac Corp., which followsrates charged by 8,000 financial institutions, including 1,000credit unions. The short-term rate hikes, however, have donenothing to affact rates on regular shares and share drafts, whichhave remained mired at all-time lows of just 76 bps and 45 bps.,respectively, for the past year.
-
The New York-based bank says it will push its concentration of commercial real estate loans below 400% of risk-based capital over the next two years and focus more on C&I.
38m ago -
The San Francisco-based firm's Anchorage Digital Trusted Liquidity and Settlement network, better known as Atlas, will allow clients to settle a range of cryptocurrency transactions.
3h ago -
Consumer spending slowed and charge-offs rose during the first quarter, but Bread Financial said a pending late-fee rule may not be as devastating to its revenue as the Columbus, Ohio-based firm initially feared.
4h ago -
Artificial intelligence models are energy hogs. Climate First Bank and UBS are among the very few trying to solve this problem.
5h ago -
The FDIC board debated and ultimately withdrew two separate proposals to address asset managers' control over banks, but acting Comptroller of the Currency Michael Hsu said he couldn't support either and called for more research and debate about how asset managers' control over banks impacts safety and soundness.
6h ago -
The state's comptroller of public accounts is one of several notable non-depositories with access to the Fed's payments system, along with the Chicago Mercantile Exchange and the Tennessee Valley Authority. So why do they have accounts while some neobanks don't?
6h ago