The Fed just dropped the discount window another 50 bps and the fed funds rate 50 bps. The 50 bps drop in the funds rate was quite a surprise and the Dow jumped nearly 200 points immediately.
Credit unions now need to carefully observe their balance sheets and manage appropriately if they are asset or liability sensitive. All of those CD promos did good things for liquidity, but CU’s are going to be hurting if they are long on those CD’s. Expect to see those CD promo rates drop as well as those wonderful money market funds. Hold on to your balance sheets, it is going to be a wild ride!