Since May 1 rates have been rising, but John Worth is advising credit unions not to be "fooled" into inaction against interest rate risk. For credit unions, the development is a long-awaited positive, with Worth, NCUA's chief economist, noted a steepening curve is "good for credit unions."
"A steepening curve is likely what we will see over the next year as loan rates go up, but the short end remains low due to Fed policy," he said.
However, an increase in short-term interest rates could lead to a flattening yield curve, along with some "real problems" for credit unions as spreads become compressed, observed Worth. http://www.cunacfocouncil.org/news/5471.html