Washington, D.C. (March 3, 2025) |
Today, the Defense Credit Union Council (DCUC) sent a letter to the House Financial Services Committee (HFSC) Task Force on Monetary Policy, calling on policymakers to consider the impact of monetary decisions on defense credit unions and the financial stability of military families.
DCUC’s letter discussed the challenges posed by interest rate fluctuations, inflation, and liquidity constraints. Key concerns mentioned:
Net Interest Income & Sustainability: Rapid rate hikes have squeezed margins, impacting credit unions’ ability to provide low-cost loans, particularly for VA homebuyers and junior enlisted personnel.
Deposit & Liquidity Management: Higher interest rates have led to deposit outflows, complicating financial stability for institutions supporting military families.
Base Access & Financial Stability: Regulatory changes and external pressures threaten the long-standing “one bank, one credit union” policy on military bases, potentially exposing service members to predatory financial practices.
Inflationary Hardships: Rising costs in housing, groceries, and childcare continue to strain military families, with defense credit unions stepping in to provide financial counseling and emergency assistance.
DCUC requests policymakers recognize the unique role of defense credit unions, ensure interest rate stability, support liquidity protections, and address inflationary pressures affecting military families. The Council looks forward to collaborating with Congress and the Federal Reserve to safeguard the financial well-being of those who serve our nation.
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.