FOMC StatementRelease Date: January 25, 2012
For immediate release
Information received since the Federal Open Market Committee met in December suggests that the economy has been expanding moderately, notwithstanding some slowing in global growth. While indicators point to some further improvement in overall labor market conditions, the unemployment rate remains elevated. Household spending has continued to advance, but growth in business fixed investment has slowed, and the housing sector remains depressed. Inflation has been subdued in recent months, and longer-term inflation expectations have remained stable.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects economic growth over coming quarters to be modest and consequently anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate. Strains in global financial markets continue to pose significant downside risks to the economic outlook. The Committee also anticipates that over coming quarters, inflation will run at levels at or below those consistent with the Committee's dual mandate.
To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decides today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions -- including low rates of resource utilization and a subdued outlook for inflation over the medium run -- are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.
The Committee also decided to continue its program to extend the average maturity of its holdings of securities as announced in September. The Committee is maintaining its existing policies of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate to promote a stronger economic recovery in a context of price stability.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Dennis P. Lockhart; Sandra Pianalto; Sarah Bloom Raskin; Daniel K. Tarullo; John C. Williams; and Janet L. Yellen. Voting against the action was Jeffrey M. Lacker, who preferred to omit the description of the time period over which economic conditions are likely to warrant exceptionally low levels of the federal funds rate.
Holiday ClosingKansas Corporate will be closed Monday, February 20, 2012, for Presidents' Day. Regular business hours will resume Tuesday, February 21, 2012.
This closing may impact your regularly scheduled currency/coin order or delivery. Please contact the Member Service Department with questions or concerns at 800.721.2677 Option 1.
FOMC StatementFederal Open Market Committee - Full Text Statement
Information received since the Federal Open Market Committee met in November suggests that the economy has been expanding moderately, notwithstanding some apparent slowing in global growth. While indicators point to some improvement in overall labor market conditions, the unemployment rate remains elevated. Household spending has continued to advance, but business fixed investment appears to be increasing less rapidly and the housing sector remains depressed. Inflation has moderated since earlier in the year, and longer-term inflation expectations have remained stable.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee continues to expect a moderate pace of economic growth over coming quarters and consequently anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate. Strains in global financial markets continue to pose significant downside risks to the economic outlook. The Committee also anticipates that inflation will settle, over coming quarters, at levels at or below those consistent with the Committee's dual mandate. However, the Committee will continue to pay close attention to the evolution of inflation and inflation expectations.
To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee decided today to continue its program to extend the average maturity of its holdings of securities as announced in September. The Committee is maintaining its existing policies of reinvesting principal payments from its holding of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. The Committee will regularly review the size and composition of its securities holidngs and is prepared to adjust those holding as appropriate.
The Committee also decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013.
The Committee will continue to assess the economic outlook in light of incoming information and is prepared to employ its tools to promote a stronger economic recovery in a context of price stability.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Richard W. Fisher; Narayana Kocherlakota; Charles I. Plosser; Sarah Bloom Raskin; Danial K. Tarullo; and Janet L. Yellen. Voting against the action was Charles L. Evans, who supported additional policy accommodation at this time.
Board & Business Loan Committee TrainingIn regard to increased regulator expectations of education and training for credit union board members and business loan committees, CUBG is now offering a course specifically designed to give key decision makers at your credit union the knowledge they need to successfully oversee a credit union's business lending program...BOARD & BUSINESS LOAN COMMITTEE TRAINING.
About the course:
- Review MBL regulations and important regulatory issues
- Understand the primary functions of a business loan committee
- Distinguish between the different types of business loans
- Understand the key underwriting criterion
- Learn about the importance of cash flow, how to calculate it and other key financial ratios
- Understand environmental and appraisal issues and how they can affect the loan decision
- Gain an understanding of the credit presentation
- Discuss portfolio management techniques including risk monitoring, concentrations, and problem loan monitoring
Suggested Audience: Credit union board and business loan committee members
NOTE: Pricing and delivery method is customized based on your credit union's needs. Choose from on-site or webinar session of 1-2 hours or up to a full day. A portion of each presentation is customized to address your specific credit union needs and each attendee will receive a certificate of completion.
Please email info@cubg.org for more information
MemServe, LLCMemServe, LLC, a Credit Union Service Organization (CUSO) established in 1985, directed by employees of MemServe owner credit unions, your credit union peers, and administered by Kansas Corporate Credit Union, your corporate, has created a shared cost environment that brings credit card solutions to your members, affordably and efficiently, without draining your human resources.
MemServe's CUSO structure provides a cost environment that allows credit unions to share costs associated with issuing VISA credit cards to their members. By doing so, processing expenses from VISA USA and our card processor, FIS, are shared by all user credit unions, as collectively, the volume exceeds minimum processing fees.
Your credit union benefits from creating a strengthened competitive position by meeting one more member need and keeping their credit card business with you, an increase in loans outstanding without a correlating increase in employee workload, payment processing via lockbok by MemServe staff and of course, increased revenues - interest income, fee income and interchange income!
Your members benefit as multiple card offerings ensure members of all incomes and history can be approved, complete shopping confidence based on account and card security features, tracking available on their schedule as internet access is provided 24/7, $250,000 in common carrier Travel Accident insurance, rewards, and SO much more!
Credit unions that want to become a MemServe, LLC, owner and issuer make a minimal capital investment in the CUSO and pay very nominal processing fees, many of which are simply pass-through from VISA USA and FIS. Call or email Judy Kampsula, KCCU Card Services Manager, for a FREE analysis at 800.243.0017 | Ext. 103 or judyk@kansascorporate.org.
CUBG Webinars & Regional MeetingsOne of the best ways to ramp up your business services programs is to make sure you and your staff have the necessary know-how to do so. CU Business Group industry experts know what you need to know and now offer you the opportunity to get that knowledge in the format you want. Training is available Over the Net and On-Demand Too!
And did we mention how AFFORDABLE it is!
CUBG members get one FREE login for all 100-level webinar courses...that's right, FREE - so gather everyone around one PC, bring your lunch sacks and get the basic business services education for FREE! 2nd logins and all 200-300 level courses are just $69 for Members and $99 for all other credit union participants. Now is not the time to skimp on training for your business services support staff - these sessions fit easily into any budget!
Webinar details are available on the Upcoming Events of the KCCU website as well as on the CU Business Group website, www.cubg.org. Regional meeting details are also available on the CU Business Group website.
On-Demand Too...
Can't make it at the date or time specified above? Scheduling conflicts are no longer a problem as many of CUBG's webinars are available On-Demand. Some of the most popular CUBG webinars have been recorded and are now available to purchase, making it easy to train at your convenience. Most recorded sessions are just $129 and there is no limit to the number of times it can be viewed by your credit union. Visit the CUBG website for a complete listing of sessions available On Demand.
And, a BONUS...
CU Business Group has been approved by the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. CPE credits can now be earned on the Analyzing Business Loans (21.5 CPE credits) and Cash Flow Analysis (14 CPE credits) Courses! For more information, visit the CUBG website or contact Circe Gleeson at 800.721.2677 | Ext. 106, or email marketing@kansascorporate.org. For an entire schedule of course dates and times, along with regional course brochures and registration forms, visit the Education tab of the CU Business Group website - www.cubusinessgroup.org.
Euros and Pesos and Francs...Oh My!It used to be a rare occurence for a member to request or even inquire about an international service. WIth many families having loved ones stationed overseas, workers relocated to other countries, and business being conducted across borders, the need for processing payments across countries has escalated and that means you've got to not only offer, but embrace if you will, this new global economy.
Kansas Corporate's approach is to de-mystify international services with easy to follow steps and systems that provide tools that simplify the processes. Our comprehensive international services program packages the services you need with education and support from our extensively knowledgable staff.
International Cash Letter and Collection Item Processing
Cash Letter items typically offer next-day provisional credit but payment is not final and the item could be returned at a later date. Collection Items provide final payment but it may take anywhere between 6 - 12 weeks to receive payment and items must be valued at or greater than $200 U.S. dollars. For more information on processing foreign items or to begin use of this service, email marketing@kansascorporate.org.
Foreign Currency
The use of cash is always welcomed and in some countries may be your only means of payment. Not having some foreign currency on hand when traveling may lead to hassles and poor exchange rates. Kansas Corporate sells currency from 98 different countries to make traveling more enjoyable and worry-free. Contact a Member Service Representative to place your order!
International Wires
Our online international wire system - InterLink - was built with so many useful tools and features that sending international payments via wire is a breeze! Linked to the Kansas Corporate website, this online system not only provides OFAC checks with no additional fees and no additional steps, you can even save remitter and wire information for recurring wire transfers. InterLink also houses an online Currency Quote/Conversion feature allowing you to login and determine the exchange rate at that very moment!
International Exchange Rates
Need to check exchange rates but aren't ready to process your wire or foreign currency purchase? Jump on the International Exchange Rates page of the Kansas Corporate website! This interactive conversion tool works for wires $10,000 and under and calculates the conversion amounts for foreign currency wires and foreign currency purchases too!
Kansas Corporate has the services you need to meet the ever-growing global demands of your members! Call (800.721.2677 | Ext. 106) or CLICK for more information!
|
