For many of us, spring is a time of welcome change, when we find our footing in the new year and begin to make plans and look ahead. But this year has been a little different. At first, there were questions about whether or not we were entering a recession. More recently, the challenges of a prominent local bank has led people to wonder about the stability of their investments.
A Foggy Economic Outlook
Answering these questions isn’t always as straightforward as we’d like it to be. The U.S. economy is complex and surprising things can happen. For example, some of the data we track is beginning to point to a recession while other sources have a mixed outlook.
Overall job growth, income growth and consumer spending have not slowed down, indicating that we are not in a recession. At the same time, increased layoffs suggest a slowdown in demand, and consumers face significantly higher borrowing costs as a result of increased interest rates. These are signs of a recession, and we may be feeling them more acutely here in the Bay Area due to volatility in the tech sector and recent bank takeovers. And when we look at the effects of a weaker housing market and a depressed stock market, the picture doesn’t get any clearer.
Steadfast in Our Support
While these signs of an unpredictable market may not be the reassurance members are looking for, they are a reminder of our commitment to you. As a not-for-profit credit union, our products and services are expressly designed to benefit our member community. This is the reason we keep an eye on the long term and are prudent in our approach to risk.
We Hope to See You Soon
Our support for you doesn’t end with your SF Fire account. We’ve been working with members over the last month, including many who came from other financial institutions, to provide guidance and ensure their stability through this time of transition. If you have questions or concerns about your finances, I encourage you to reach out or stop by your local branch (Noe Valley members, look for our new branch opening in May!). And if you have a friend or family member who’s interested in switching to a credit union, send them our way. And let them know they don’t need to be a firefighter to join.
President and CEO