The Fed is closer to the end of its tightening phase than the beginning, Cleveland Fed President Loretta J. Mester said in July.Read her remarks.
How well-anchored are inflation expectations?
A new measure from Cleveland Fed researchers shows that five-year inflation expectations have re-anchored near the Fed’s 2% target, consistent with views of professional forecasters that higher inflation over the past two years would be temporary. Find out about the new measure.
Was the FOMC slow to raise rates after the onset of the COVID-19 pandemic?
This Economic Commentary offers evidence that although the Federal Open Market Committee decided not to tighten monetary policy immediately after it expected inflation to rise, the committee did expect to increase the policy rate over a two-year period. Here are the details.
Two Cleveland Fed measures of inflation show that it’s slowing
The median consumer price index (CPI) reading for June increased 6.4 percent year over year, down from a 6.7 percent increase in May. The trimmed-mean CPI rose 5 percent year over year, down from a 5.5 percent rise in May. See the data.
Adjusting prices in a high-inflation environment
What factors are most important when businesses set their prices? They look at the strength of demand, among other considerations, according to research from the Cleveland, Atlanta, and New York Reserve Banks. Learn about how pricing happens.
Economic Inclusion
Cleveland Fed president: Efforts like Policy Summit key to strong economy
Understanding and addressing challenges low- and moderate-income communities face is an important part of the Cleveland Fed’s work to create a robust economy that works for everyone, Bank President Loretta J. Mester told a local reporter. View the coverage.
Perseverance, partnerships lead to stronger communities
In closing remarks at the biennial Policy Summit, Cleveland Fed President Loretta J. Mester pointed to land bank and lead remediation efforts in Cleveland and pre-K programs in Cleveland and Cincinnati as a few examples of programs making real progress addressing the challenges faced by low- and moderate-income people and communities.Read more.
Banking
An overview of the Fed’s new instant-payments service
The rollout of FedNow, the Fed’s new instant payments service, will let bank customers send and receive payments within seconds, around the clock, every day, and access funds immediately, Cleveland Fed President Loretta J. Mester said in July. Read her remarks about FedNow®, which is now live.
How we supervise and regulate banks
The Cleveland Fed supervises almost 270 financial institutions headquartered in the region the Bank serves to ensure that they operate in a sound manner, provide fair access to credit, and follow laws and regulations. Find out how we do it.
Outreach Into history and architecture? This event is for you
Join the Cleveland Fed on Tuesday, August 8, from 5 to 7 pm (EDT) at our downtown Cleveland building, which turns 100 this year, for a program that explores why the US central bank exists and why it’s structured the way it is. Register now.
We earlier this year welcomed two new members to our Cleveland and Cincinnati Branch boards. Read profiles on newly appointed directors Helga Houston (Cleveland) and Gina McFarlane-El (Cincinnati).
Economic Inclusion
Pittsburgh organizations work together to tackle economic mobility challenges
Learn how Pittsburgh community development organizations are tackling inequity and working toward more inclusive economic growth models for underserved residents. Read the most recent Notes from the Field.
Financing approvals lag for startups owned by people of color
Despite their increasing numbers, entrepreneurs of color are still much less likely than their white counterparts to get approved for financing, according to a new report. Get the details.
Policy Summit 2023: 500+ professionals gathered in Cleveland
There was much to discuss this year in this challenging economic environment, including lack of affordable childcare and housing, small businesses’ struggles to access capital, the digital divide, and more. Read about the event and watch key sessions.
Question: US Census Bureau data reveal that many firms owned by people of color started in 2020 or later. What do you make of this? What does it say about the pandemic years, and what might it mean for the future?
Lucas: The pandemic was a unique time because a lot of people in the traditional workforce were forced to pursue other options, and for workers who wanted to become entrepreneurs, it was a natural time to do that. The Fed’s Worker Voices project, which focused on the experiences of non-degreed job seekers and workers in lower-wage roles, including people of color, at the beginning of the COVID-19 pandemic, picked up on this: Individuals wanted to take control of their careers, build something in their communities, and start businesses that become wealth-generating tools.
Unfortunately people of color who started businesses tended to face more challenges.
We know through the Small Business Credit Survey (SBCS) that regardless of owner race or ethnicity, startups—defined as businesses that are two years old or less—tend to face more challenges and have a harder time accessing credit than older businesses. We also know from 2022 SBCS data that nonwhite startups founded during the pandemic were less likely than white-owned startups to receive funds through financial institutions or lenders, even though…
Read the entire Q&A, in which Lucas Misera, who analyzes data to understand the challenges facing small businesses, discusses what he’s watching for in the development of startups owned by people of color.
August 8
FedTalk: Nothing the World Had Ever Seen: The Origins of America’s Central Bank
