FOMC MAINTAINS FEDERAL FUNDS RATE

The following information was released by the Credit Union National Association (CUNA):

The Federal Open Market Committee (FOMC) maintained the federal funds rate target range at 3.5% to 3.75% Wednesday following its meeting. According to the committee, "implications of developments in the Middle East for the U.S. economy are uncertain," and it will consider incoming data, the evolving outlook, and the balance of risks in considering potential additional adjustments.

"The FOMC maintained the target fed funds rate at its current level. The Committee's inflation projections for 2026 moved up, and its statement notes heightened uncertainty over 'developments in the Middle East.' The price stability side of the Fed's mandate is clearly growing in importance, but not enough to alter the Committee's projected rate path, which continues to imply a single rate cut in 2026 and another in 2027," said America's Credit Unions Chief Economist Curt Long. "With debt service costs adding to households' overall affordability woes, credit unions are a crucial difference maker, offering the best borrowing rates in the marketplace."