The Federal Open Market Committee (FOMC) issued its decision to cut the federal funds rate by 25 basis points yesterday at their final meeting of 2024. 
 

America’s Credit Unions Head of Emerging Issues/Deputy Chief Economist Curt Long issued the following statement after the meeting, outlining the potential impact for credit unions:
 

“The FOMC cut rates by 25 basis points as expected but signaled just two rate cuts in 2025 versus four in its previous projections. Behind this more hawkish outlook was a higher forecast for inflation next year with risks weighted to the upside. At the margin, higher rates in 2025 would mean slower share growth and lighter loan demand for credit unions.”