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CFI Quarterly Trends Reports
1Q 2021 Tenth District Community Financial Institution Trends By Corporate Strategies and Solutions Leslie Mondesir July 23, 2021
 

Recovery from the pandemic remains the primary driver of economic performance as we head into summer. Social restrictions are being lifted, and we are seeing a resurgence in travel. Travel is still down from pre-pandemic levels but a massive recovery from 2020.

While the economic recovery is underway and gaining momentum, the pandemic continues to wreak havoc on the global front with the emergence of COVID-19 variants causing concern to the pace of a global recovery. The impact of variants on the effectiveness of vaccines remains unknown and is considered a risk to the economy.

The Federal Reserve continues to reiterate that accommodation is still appropriate and remains firm in its commitment to continue to support the economy from a monetary policy perspective. The central bank has kept its benchmark rate at near-zero levels and has not yet made any major changes to its asset purchase program. The Federal Open Market Committee (FOMC) has been clear it will be patient when it comes to unwinding asset purchases, a precursor to rising rates.

Gross domestic product rose 6.4% in the first quarter of 2021, just below the 6.5% rise that was expected. This follows a relatively subdued 4.3% gain in the fourth quarter of 2020, hampered by renewed coronavirus controls implemented during the holiday season.

Leslie
Leslie Mondesir Leslie began her career in 2009 in Chicago at an investment banking firm focused on the financial services industry. She joined FHLBank in 2016 in her current role.
Corporate Strategies and Solutions Our Corporate Strategies and Solutions department monitors today’s economic environment and analyzes our members’ financial trends and business activity. The department serves our members by identifying funding and liquidity strategies or solutions that fit their needs and help them enhance their financial performance.
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