WASHINGTON - (02/01/06) -- The Open Market Committee of theFederal Reserve in Chairman Alan Greenspan's final meeting voted tolift the benchmark federal funds rate for overnight funds again by25 basis points to 4.5%, its 14th straight 25 bp increase sinceJune 2004. But the Fed moderated its tone in announcing the movemaking it clear that incoming Fed Chairman Ben Bernanke haslatitude to lift or cut rates in the future. "He's definitelyhanding it off to Bernanke, in the sense that they haven'ttelegraphed that they will go higher or lower," said Jeff Taylor,senior economist for NAFCU. "This allows him to shape things forhimself." Taylor said he expects the short-term target to go higherstill, probably to 5% before the Fed decides to moderate its policyaimed at tamping inflation and unemployment. The rising short-termrates, said Taylor, will add increasing pressure on credit unionsto lift their regular share rates, which have remained mired below1% for two years. "They're going to have to go higher," he told TheCredit Union Journal.
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Strong loan and deposit growth led to a double-digit increase in revenues and an even bigger jump in profits at the Columbus, Ohio-based regional bank.
October 17 -
Flagstar shareholders approved a plan to merge its holding company into the bank; Huntington tapped a new chief auditor, along with two new business leaders; First Foundation hired a new chief credit officer; and more in this week's banking news roundup.
October 17 -
In a tough quarter for the auto industry, the Detroit-based lender posted earnings that sped past Wall Street's expectations.
October 17 -
Approximately three years after the one-time non-depository bought Roscoe (Texas) State Bank, Cornerstone Capital Bancorp agreed to purchase Peoples Bancorp.
October 17 -
Regional banks say their asset quality is solid amid skittish investors. The KBW Nasdaq Regional Banking Index was largely stable Friday after falling by as much as 7% the day before.
October 17 -
Coordinated sanctions target two networks behind so-called pig butchering scams, human trafficking and money laundering for North Korean cybercrime groups.
October 17