Last week, the Federal Reserve’s Federal Open Market Committee announced that it will raise its Federal Funds Rate by .25%, which represents the Fed’s first rate increase since June 2006. Economists, analysts, and the media had been speculating about the rate increase leading up to the announcement, and I know that many of our members are wondering what impact the rate increase might have on you.
The Fed’s rate increase can be viewed as a sign of improving economic and labor market conditions after years of recovery from the Great Recession. In the short term, the effects of the Fed’s rate increase will be relatively small. It is difficult to predict what the Federal Reserve may do in the next 6 to 12 months. The overall directional change indicated by the rate increase, however, may be more important than the immediate impact of the .25% rate increase.
One of the benefits of your membership at cPort is that, because of our cooperative structure, you are an owner of our credit union. We exist to provide the best financial experience to you, our members. As rates change, we will continue to manage our deposit and loans rates to maximize value to our members while maintaining our long-term financial strength.