Weekly Credit Union News !

Fed Likes, Fed Pauses, Fed Wants More 

The Fed decided Wednesday not to change rates, and for the first time since it began raising rates in early 2022, Fed Chair Jerome Powell said he was pleased by rate of improvement in inflation over the past three months.

However, Powell said the Federal Open Market Committee (FOMC) wants to see at least that rate of improvement continue before deciding at its next meetings whether the economy needs another jolt of interest rate hikes to bring inflation down to its 2% target.

NAFCU Economist Noah Yosif said the decision “suggests a positive outlook among committee members regarding the trajectory of inflation, despite some acceleration within headline numbers due to rising energy prices.” 

CUNA, NAFCU & Others Plea to Lawmakers: Kill the Credit Card Competition Act 

Eleven credit union, banking and payments groups sent a letter on Friday to the leaders of the U.S. House of Representatives and Senate in an effort to squash the Credit Card Competition Act as two senators are attempting to attach the controversial bill to the Senate version of the government funding bill.

 Federal funding for the government is set to run out on Sept. 30. And officials from the 11 groups have found themselves in a race against time to stop the Credit Card Competition Act – a bill credit union leaders believe would cause severe harm to credit unions in the card payments landscape. 

Pres. Biden Nominates Tanya Otsuka to NCUA Board 

President Joe Biden announced on Thursday his nomination of Tanya Otsuka to serve on the NCUA Board. Otsuka currently serves as senior counsel for the majority staff of the U.S. Senate Banking, Housing, and Urban Affairs Committee under Chairman Sherrod Brown (D-OH), where she has handled the Committee’s work on banking and credit union issues since March 2020.

Otsuka would replace Board Member Rodney Hood whose term on the board expired in August. 

Virginia Credit Union Voting Whether to Go Federal

Virginia Credit Union members are voting on whether to change to a federal charter after losing a fight with state bureaucrats worthy of a Franz Kafka novel.

And, yes, bankers were involved. More on that later.

VACU announced the plan Aug. 24 with President/CEO Chris Shockley urging members to vote for the charter change. Voting ends at. Sept. 21. If approved by members and the NCUA, the credit union expects to convert to a federal charter in 2024. 

NCUA Board Approves Financial Innovation Final Rule

In a 3-0 vote, the NCUA Board approved its final rule for financial innovation that amends current regulations surrounding indirect lending, the purchase of loan participations, as well as “the purchase, sale, and pledge of eligible obligations and notes of liquidating credit unions.”

The rule, which was introduced in December, was passed during Thursday’s NCUA Board meeting and should help clarify the agency’s current regulations to provide clarity and flexibility that could make it easier for federally insured credit unions to take advantage of opportunities offered by financial technology. 

African American and Louisiana credit union groups partner to foster talent

The African American Credit Union Coalition is teaming up with the Luminate eague to bring talent development and financial advisory services to member institutions in need across the state.

Attracting talent remains a key challenge throughout the financial services industry, as employees emerged from the remote environment of the COVID-19 pandemic with a newfound focus on workplace benefits and upward mobility.

Source : Cutimes, American Banker