The COVID-19 pandemic disproportionately affected the health and financial well-being of communities of color. Over the past year, minority banks that specialize in providing financial services to underserved communities and minority borrowers have also performed significantly worse than other banks of similar size. Minority banks projected higher loan losses and had lower profits than nonminority banks. To the extent that underperforming minority banks may be more reluctant to expand lending—whether to avoid risk or minimize regulatory scrutiny—it could further exacerbate the unevenness of the recovery.

August 3, 2021

Go anywhere in the country today and employers will tell you it’s hard to find workers—harder than it’s been in a while, harder than they expected it to be, and certainly harder than they would like it to be. Many worry that this will persist, that the labor market is already really tight and will get even tighter as the economy recovers.

But there are almost 10 million people who are unemployed and even more on the sidelines. These are people who worked before the pandemic and likely have the skills to work today. Of course, myriad factors are tempering labor supply at the moment—the need to care for children, fears of COVID, generous unemployment benefits. But there is no reason to expect those to be permanent or even highly persistent features of the labor market.

Indeed, we learned this in the aftermath of the Great Recession. The downturn put millions of prime-age men and women out of work (see Figure 1). Many believed that this would...

Firms of color were more likely to experience financial and operational challenges stemming from the pandemic. These challenges are particularly salient given the important role business ownership plays in wealth building and employ­ment in communities of color.

The COVID-19 pandemic disproportionately affected the health and financial well-being of communities of color. Over the past year, minority banks that specialize in providing financial services to underserved communities and minority borrowers have also performed significantly worse than other banks of similar size. Minority banks projected higher loan losses and had lower profits than nonminority banks. To the extent that underperforming minority banks may be more reluctant to expand lending—whether to avoid risk or minimize regulatory scrutiny—it could further exacerbate the unevenness of the recovery.

Nine community cohorts from the Philadelphia, Atlanta, Minneapolis, Richmond, and San Francisco Federal Reserve Districts are participating in the 2021 ROC Cohort Program. Community cohorts are learning to frame, contextualize, and organize around equitable small business recovery and supports for small business owners of color in their community.

The 2021 program is currently underway and will continue over the next 10 months. Please check back for recordings and resources on small business equity, including:

June 28, 2021

To deepen our understanding of the economic impact of gender and racial inequities, the San Francisco Fed is launching an essay contest for doctoral students. This contest is part of our commitment to better understand the U.S. economy’s potential in order to support our maximum employment mandate.

Our own research shows that gender and racial equity will be crucial for producing faster economic growth and helping the country stay competitive globally. This equity will reflect an economy in which all people can participate, prosper, and reach their full potential.

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While the severity and scope of a changing climate remains unclear, the consensus is that it poses a significant risk to the global economy and financial system. As monetary policymakers, the Fed’s job is to navigate this uncertainty by anticipating the potential changes and understanding their implications. The following is adapted from remarks by the president of the Federal Reserve Bank of San Francisco to the Peterson Institute for International Economics on June 22.

June 28, 2021

To deepen our understanding of the economic impact of gender and racial inequities, the San Francisco Fed is launching an essay contest for doctoral students. This contest is part of our commitment to better understand the U.S. economy’s potential in order to support our maximum employment mandate.

Our own research shows that gender and racial equity will be crucial for producing faster economic growth and helping the country stay competitive globally. This equity will reflect an economy in which all people can participate, prosper, and reach their full potential.

Can you believe it’s June already? It’s a special month to me. There are several birthdays in my circle, Father’s Day, graduations, Flag Day, Pride month, and Juneteenth is fast approaching.

Juneteenth commemorates the date June 19, 1865 — General Gordon Granger arrived in Galveston, Texas announcing General Order ?3. The order proclaimed:

Our work is in the pockets of each American. It fuels innovation and jump-starts dreams. We are the defenders of dollars—working hard to ensure the economic and financial stability of our country and our region.

We like to say we work for the Fed, not at the Fed. That’s because the SF Fed is not just another employer or government agency. Here, you have the opportunity to become part of an important public service institution whose work touches lives across the globe. The thought of economic and monetary policies may lead you to think of the Federal Reserve as solely a banking organization. Quite the contrary, as you can see, our work includes a broad range of disciplines.