Let's Learn About Rates & Inflation

At Coloramo, we understand that interest rates, inflation, and the overall economy are top of mind for many right now. Managing your finances in uncertain times can feel overwhelming, but we’re here to help you stay informed and make confident financial decisions. As a credit union, we focus on long-term success while giving back to you, our members, through dividends, personalized service, innovative technology, and financial education. 

We believe that having access to the right tools is essential for making sound financial decisions. Here are a few valuable resources that may help: 

  • Federal Open Market Committee (FOMC): The FOMC, consisting of the Board of Governors, the President of the NY Fed, and rotating presidents from other reserve banks, meets eight times a year. After each meeting, they release a statement regarding the Federal Funds Rate, accompanied by economic projections four times per year. You can access these statements and learn more about the FOMC's work here: Federal Reserve FOMC Calendar. 

  • CME Group: As the world’s leading derivatives marketplace, CME Group provides valuable economic forecasts. You can explore their economic predictions through the FedWatch Tool here: CME FedWatch Tool. 

Inflation plays a significant role in shaping the Federal Funds Rate. Since 2012, the U.S. Federal Reserve has targeted an inflation rate of 2% as measured by the Personal Consumer Expenditures (PCE) Price Index. Typically, rates are raised to combat rising inflation and ensure price stability, while lower rates are designed to support economic growth and boost employment. Recessions can coincide with a rise in unemployment. 

Based on current data, it appears that interest rates may decrease in the future. While many financial institutions are offering higher rates for shorter terms, it could be wise to consider long-term investments given the potential for falling rates.  

Of course, we can’t predict the future, so the resources listed above are designed to help you make informed decisions. At Coloramo, our goal is to ensure the long-term success of our members. We work hard to balance competitive rates, manage dividends responsibly, and provide you with the tools and guidance you need to thrive financially. Ultimately, we’re here to support your financial well-being. If you have any questions, please do not hesitate to contact us.  

Cayla Albrecht