WASHINGTON - (09/20/05) -- Any doubt that the Federal Reservewill continue its push for higher interest rates was erased by theaftereffects of Hurricane Katrina, which is expected to result in amassive flow of government spending, according to market observers.As a result, the Fed is widely expected to push up short-term ratesagain Tuesday by another 25 basis points, or more. "The Fed isgoing to continue to increase by 25 basis-points," said Tun Wai,chief economist for NAFCU. He said the massive new spendinginitiatives are going to add inflationary pressures on the U.S.economy in the foreseeable future. Congress is discussing a massiveeconomic stimulus package, as much as $200 billion, to rebuild inthe Gulf States after Hurricane Katrina. Going forward, the NAFCUeconomist expects a continued effort by the Fed to raise theovernight Fed Funds rate from the current 3.50%, probably at themeeting of the Fed's Open Market Committee in November andDecember. "The only issue is whether the post-Katrina growth datawill make them pause," Wai told The Credit Union Journal. NAFCU'steam of economists predicted that economic growth will slow for thethird quarter, and for the fourth quarter, as a result of HurricaneKatrina.
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At a time of mild or nonexistent loan growth, middle-market borrowers in the Lone Star State are providing a boost to Fifth Third Bancorp and Huntington Bancshares.
April 19 -
New details have emerged about the negotiations that culminated in Capital One's blockbuster $35 billion agreement to acquire Discover. At one point last December, the two parties broke off discussions, according to a securities filing.
April 19 -
According to the Federal Reserve Board's latest financial stability report, persistent inflation and policy uncertainty are the primary worries for banks. Survey respondents expressed heightened anxiety over murky policy outlooks due to geopolitical turmoil and rapidly approaching domestic elections.
April 19 -
The Alabama regional lender says it expects expenses to taper off this year and anticipates challenged loans will gradually rise to historically average levels.
April 19 -
Truist Financial's top executive leadership team announces departures; First Horizon's chief credit officer is retiring; Ferry teams with Highnote to roll out a new Visa-branded payroll card; and more in the weekly banking news roundup.
April 19 -
The Dallas-based regional bank tapped a client for its co-pilot capabilities, where employees can message a bot instead of a human to get tech assistance.
April 19