The National Credit Union Administration struck a cautiously optimistic tone in its latest "economic update" video,
Stoked by predictions that the U.S. economy will grow over the coming 18 months while unemployment keeps declining, forecasters expect the Federal Reserve to raise short-term interest rates by 2016, noted NCUA Chief Economist Ralph Monaco.
But other factors, such as growth in China, could move the goalposts, he noted.
"With this much uncertainty in the interest rate forecast, it becomes even more important for credit union managers and boards to analyze and understand what might happen to net income and balance sheets under a variety of interest rate scenarios."
