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After four quarters of contraction, Gross Domestic Product finally increased over the past quarter by 3.5%. This is better than economists expected, and could signal a turning point for an economic recovery.
Next Wednesday, the Federal Open Market Committee meets to decide the target Federal Funds rate.
Key language to look for in the FOMC statement will be the continuation of “economic conditions are
likely to warrant exceptionally low levels of federal funds rate for an extended period.” All 65 economists
surveyed by Bloomberg News earlier this month expect rates to remain unchanged for the remainder of 2009.
Since rates are stalled, many credit unions are lengthening their investment portfolios in order to increase yield.
While going long now does pose an increased interest rate risk, purchases of one- to two-year certificates and
securities can make good sense for your credit union depending on your loan demand and expected liquidity
needs going into 2010.
Next Week Release Expected Previous
Monday ISM Manufacturing 53.0 52.6
Pending Home Sales MoM (Sep) 0.4% 6.4%
Tuesday Total Vehicle Sales (Oct) 9.8M 9.2M
Wednesday Mortgage Applications (purch/refi) 255/2353
ADP Employment Change (Oct) -190k -254k
FOMC Rate Decision 0.25% 0.25%
Thursday Initial Jobless Claims 530k
Friday Change in Nonfarm Payrolls (Oct) -169k -263k
Unemployment Rate (Oct) 9.9% 9.8%
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Mid-Atlantic Corporate Federal Credit Union 1201 Fulling Mill Road, Middletown, PA 17057 717 985-3300 800 622-7494
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