NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — Creighton University economist Ernie Goss said he expects the Federal Reserve to give the economy a little time before raising rates again.
"The inflation rate is running between three and four percent, which is still well above the Fed's goal," Goss said. "The Fed's Open Market Committee meets again on Sept. 19 and 20. This time, I don't expect a rate hike. I think they are going to have to take a wait and see approach. That's what the bankers recommend and what they anticipate, as well."
Banks have been dealing with lower margins between what they can loan money out for and what it costs them lately and certainty in interest rates could give them more confidence when making loans.
"In my judgment, we need to see that," Goss said. "I think the Fed should pull back and take a wait and see approach. That would help the banks, but the outlook's real bumpy, not a soft landing for the banks, community banks, regional banks and national banks."
A lot of banks have merged in the last few years, and Goss doesn't see that changing anytime soon.
"It's going to be somewhat limited," Goss said. "It's not going to be like we saw in 2008 and 2009, where we saw a 40% loss. Loss through mergers and acquisitions primarily, not through failures. That's not good for the communities out there. These communities, particularly farming and agriculture depend heavily on community banks."
The importance of bankers that know the land they are putting risk into cannot be overstated, and that's where community banks are vital to the main street economy across the Midwest.
CLICK HERE to download the Hutch Post mobile app.
CLICK HERE to sign up for the daily Hutch Post email news update.