“We are likely near or at a holding point on the funds rate as we accumulate more information on economic and financial developments and assess the effects of the tightening in financial conditions that has already occurred,” Cleveland Fed President Loretta J. Mester told an audience in New York. Read her remarks.
The weight of higher inflation
Besides diluting purchasing power, inflation raises the costs of negotiating wages, taxation, investments, and other financial arrangements. Read the Economic Commentary.
TODAY! Conversations on Central Banking: The Unequal Burden of Inflation
Join Cleveland Fed President Loretta J. Mester and a panel of researchers at 11 am ET today for this free webinar moderated by the Washington Post’s Rachel Siegel. Learn more and register here.
Outreach
Meet the search committee seeking the next Cleveland Fed president and CEO
Community members can hear directly from members of the search committee responsible for hiring the next president and CEO of the Cleveland Fed, the person who represents this region in meetings of the national monetary policymaking body. Be there on November 27. (The public may recommend a candidate, too.)
Economic Inclusion
Long-awaited updates to Community Reinvestment Act finalized
The CRA, a landmark law passed in 1977, promotes financial inclusion by encouraging banks to expand access to credit and financial services in low- and moderate-income communities and other high-need areas. Among other things, the changes preserve the importance of bank branches while embracing the digital delivery of banking services.
Upcoming FedTalk: Financial Inclusion and the Unbanked
What do we know about why people don’t have bank accounts and does it matter if someone is not part of the banking system? To explore the answers, sign up for this webinar at 3 pm ET tomorrow, November 15.
Why does wealth distribution matter?
Watch the video or read the transcript of our October FedTalk as economists address this question, fundamental to understanding prosperity and poverty in the US economy.
Innovation in combatting the benefits cliff, per the experts
Own a small business? The Federal Reserve Banks want to hear from you. Consider taking 10 minutes to participate in this annual survey and contribute to the data and findings that directly inform the Fed, federal government agencies, service providers, policymakers, and others.
Understanding what small businesses need, thanks to data from the Small Business Credit Survey
The New Jersey Economic Development Authority is using data from the Fed’s survey to investigate what companies in its state need to grow and thrive in the country’s evolving economy. Read about their work and this important partnership.
This year’s conference focuses on financial stability in times of macroeconomic uncertainty. Register to attend virtually.
A decentralized central bank
The Federal Reserve System is the central bank of the United States. So why are there 12 Reserve Banks? Find out why.
Workforce
Elevating noncollege worker voices on what makes a quality job
“…I am one of their workers, but I am also a person and, you know, my health comes first.” Hear directly from workers on what they value in a quality job in the latest installment of the Federal Reserve's Worker Voices series.
Housing
Corporate and institutional investors both expand and constrain housing opportunities
A recent event with Federal Reserve and national experts explored how contracts for deed and investor-owned single-family rentals are affecting lower-income communities. Watch the recording.
ASK THE EXPERT
Question: Billions of dollars have been set aside to try to narrow the digital divide by expanding access to broadband internet connectivity. How is that money being spent?
Merissa: Unprecedented investments are being made to expand broadband access and enable more people to connect to the internet and have the technical knowledge to use it.
Investments are aimed at overcoming multiple obstacles to connectivity: Some people don’t have access to the service, others can’t afford it or don’t have the digital skills to connect. It’s a significant issue for low- to moderate-income communities, people of color, and rural areas. The problem can look different in different places…
Read the entire Q&A, in which Merissa Piazza, who researches issues related to low- and moderate-income people and communities, discusses how funding is being directed to expand broadband access and why the Federal Reserve cares about this issue.
OUR COMMUNITIES
People and Households
Access, affordability, and adoption: three challenges to digital equity in our region
New research focuses on educational opportunity in Ohio
Researchers use data from Ohio to study the racial makeup of K–12 schools and how those schools perform. Read the Economic Commentary.
Outreach
Meet Darrell McNair, our new board director
Darrell is passionate about supporting the Cleveland Fed by sharing his observations of regional and industry trends, gained through his role as president and CEO of MVP Plastics. Read Darrell’s profile.
WHAT WE'RE HEARING AND SEEING
One of the things that surprised me most when I joined the Federal Reserve Bank of Cleveland in January 2023 was the breadth and depth of outreach conducted by the Bank to gather information from businesses across the region in advance of meetings of the Federal Open Market Committee, often abbreviated as FOMC.
My colleagues and I in the Regional Analysis Group gather survey results from and conduct interviews with business leaders across the region the Bank serves to inform the process of setting monetary policy, including decisions to increase, maintain, or decrease interest rates. This information complements official statistics and forecasts by providing policymakers with real-time insights into not only what is happening in the economy, but also why.
Much of this information is collected in a publication called the Summary of Commentary on Current Economic Conditions, commonly known as the Beige Book. The Beige Book is published by each Federal Reserve Bank eight times per year, prior to each meeting of the FOMC. The Cleveland Fed Beige Book is constructed using the results of a survey of business, nonprofit, and government contacts from across the region.
Another source of information that informs the monetary policymaking process comes from conversations with business leaders of our Business Advisory Councils (BACs). The Cleveland Fed currently has eight BACs, one in each of the following metro areas: Cincinnati, Cleveland, Columbus, Dayton, Erie, Lexington, Pittsburgh, and Wheeling. Our BACs are comprised of senior business leaders from a wide range of businesses, labor organizations, and community organizations, and they meet quarterly to discuss recent business performance, employment and wage changes, and expectations for future growth. In addition to our BACs, the Regional Analysis Group also meets monthly with our boards of directors in Cleveland, Pittsburgh, and Cincinnati to discuss current and expected conditions.
The information provided by our Beige Book contacts, BAC members, and directors are critical components of the briefing we develop to inform Cleveland Fed President Loretta J. Mester on regional economic conditions in advance of the FOMC meeting where interest rate changes are decided. These conditions may be consistent with the national trends or may run counter to them. For example, nonfarm payroll employment increased by 336,000 jobs across the US in September, however, many BAC members noted they have limited hiring for new employees, except for in strategic areas. BAC members also can provide valuable insights into current or expected conditions that would not be seen in official statistics for several months. For example, many of our contacts have provided valuable insights into how the recent United Auto Workers strike is impacting demand for their products and services and how they expect their industries to recover following the strike. Additionally, we speak with businesses including restaurants and retailers who may be impacted by reduced spending as a result of the lost wages of UAW members.
You can lend us your valuable insights, too: If your organization is interested in participating in the Beige Book survey, contact our team to see if yours would be a good fit. —Russell Mills, Senior Regional Officer, Pittsburgh Branch
ON THE CALENDAR
November 14
Cleveland Fed Conversations on Central Banking: The Unequal Burden of Inflation
