This week’s New York Minute brings updates from the Association, including our new spotlight series for our board of directors, generous contributions to community development, and expert economic forecasts.
Highlighting Our Board: Meet Eric Hepkins
Dive into our latest blog post featuring Eric Hepkins, Chairman of the Association’s Board of Directors and CEO of Cornerstone Community FCU. Eric’s blend of strategic leadership in the credit union sector, alongside his personal dedication to family and endurance sports, paints a picture of a well-rounded and passionate leader. His journey reflects a deep commitment to leveraging his experience for community upliftment and the broader success of credit unions in New York.
Eric’s journey in the credit union world has been driven by a strong belief in the industry’s core values and a desire to actively contribute at a higher level through the Association Board. He emphasizes the importance of credit unions in building a community-focused culture and their critical role in serving New Yorkers.
For a deeper insight into Eric’s professional ethos and his outlook on the future of credit unions, we encourage you to visit our blog.
CU Recognition: Municipal Credit Union Commits $2 Million to Support New York Communities Through MCU Foundation
The Association celebrates Municipal Credit Union’’s (MCU) generous donation of $2 million to the MCU Foundation, a move that significantly enhances the foundation’s efforts to combat poverty and promote generational wealth in New York City. Announced by MCU CEO Kyle Markland, this donation marks a pivotal expansion of MCU’s philanthropic outreach, fostering community support for New Yorkers in need.
The investment is set to bolster the foundation’s operational capacity and fund key programs aimed at providing essential resources, educational opportunities, and pathways to homeownership. MCU Foundation President George Chacon expressed excitement about the foundation’s potential through these initiatives by stating, “The future of New York City is bright, and we can make it brighter by working together to help New Yorkers not just break out of poverty but also build the generational wealth that ensures a better future for all.”
For further information on how the MCU Foundation plans to utilize this donation to make a lasting difference in the community, visit their website.
Association Congratulates Walter Bobesky on His Retirement!
The Association congratulates Walter Bobesky on his retirement as President and Chief Executive Officer of SECNY Federal Credit Union after his 32 years of service. Walt led the credit union during a period of both growth and innovation, including the introduction of the nation’s first indoor drive-thru and the expansion of the credit union’s branch network.
Walt’s dedication to the core values of service, education, and community has benefited SECNY FCU while contributing to the broader New York credit union community. His role in steering the credit union to success and creating a foundation for future growth is well recognized.
“I wish Walt a happy retirement and congratulate him on his many years of service to credit unions,” said Association President & CEO William J. Mellin. “I’m sure we all wish him well as he begins the next chapter in his life.”
Read the message from SECNY FCU below!
TruStage: Economic Trends Report for January 2024
By Steve Rick, Chief Economist
As we begin 2024, the question on the minds of many credit union leaders is what the economic environment will look like during the next few years. Looking in the rear-view mirror, the economy performed surprisingly well in 2023 producing 2.5% more goods and services compared to 2022, which is above the 2% long-run natural growth rate (see figure below). Growth was broad-based as consumer, residential, government, and export spending reported robust growth.
Other signs of recent economic strength include strong monthly job growth across most sectors and industries, a very low 3.7% unemployment rate, and wage and price pressures continuing to decline. As the inflation rate falls throughout 2024 this should allow the Federal Reserve to begin lowering short-term interest rates sometime this summer.
So, with this economic backdrop we are forecasting real gross domestic product to rise 1.5% in 2024, slightly below the long-run average of 2%, creating the “soft landing” scenario the Federal Reserve is shooting for. So why are we forecasting below trend growth? First and foremost, the long and variable lags of monetary policy will weigh on job gains which in turn slows economic growth.
Other factors reducing economic growth include slowing inventory accumulation, a rise in the personal savings rate, some reduction in consumer spending by lower-income households who must start repaying student loans and the tightening of welfare eligibility requirements. Even though a recession is always a possibility, we are putting its probability at 33% for 2024. Factors that could push us into negative growth would be a combination of significantly higher energy prices, higher long-term interest rates, and a sharp drop in commercial real estate prices leading to a banking crisis.
Read the whole report below!
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