Maude Toussaint-Comeau is a senior business economist in the community development and policy studies division of the economic research department of the Federal Reserve Bank of Chicago. Toussaint-Comeau's research has been on the use of formal and informal financial markets by minority groups and the use of alternative financial services, such as check-cashing outlets and payday loan companies. She has also conducted a line of research on immigrant utilization of financial services; labor market adjustment of immigrants; immigrant impact on natives; homeownership attainment of immigrants; and immigrant self-employment and business ethnic networks. Her current research focuses on consumer sentiment and consumption expenditure and on diversity and firms' productivity. She has been published in International Migration Studies, Contemporary Economic Policy and Review of Economics and Statistics. Prior to joining the Chicago Fed in June 1998, she taught...

The past decade of growth in the U.S. economy has benefited some places and demographic groups more than others. Despite aggregate increases in employment, wages, and home prices, wide gaps remain, especially between racial groups. This pattern has drawn the attention of stakeholders in the public, philanthropic, and nonprofit sectors in cities across the country. Some cities face unique challenges in supporting their communities most in need. Many older industrial cities in the Midwest have limited public and philanthropic resources, challenging demographic trends and local economies that have transitioned away from manufacturing as the dominant employment sector.

 

Given these shifts, we wondered: have community and economic development (CED) practitioners identified economic inclusion as a priority in these cities? If so, how are they defining the problem and addressing barriers to economic growth for lower-income places and people? What strategies are...

Our region’s communities have great strengths, but today face extraordinary challenges. Recovering from the pandemic will require an unprecedented effort. And racism and other barriers limit economic opportunities for too many people, even in good times. Project Hometown is the Chicago Fed’s commitment to engaging all of our communities as they confront these challenges. Project Hometown will bring together civic leaders, expert researchers, Chicago Fed staff, and concerned residents. Through these diverse perspectives, Project Hometown will examine how our hometowns can recover from the pandemic, overcome longstanding inequities, grow stronger, and provide all people with the opportunity to thrive.

The Chicago Fed’s National Financial Conditions Index (NFCI) provides a comprehensive weekly update on U.S. financial conditions in money markets, debt and equity markets and the traditional and “shadow” banking systems. Because U.S. economic and financial conditions tend to be highly correlated, we also present an alternative index, the adjusted NFCI (ANFCI). This index isolates a component of financial conditions uncorrelated with economic conditions to provide an update on financial conditions relative to current economic conditions.

The NFCI and ANFCI are updated on a weekly basis at 8:30 a.m. ET on Wednesday, and cover the time period through the previous Friday. When a federal holiday falls on a Wednesday or earlier in the week, the NFCI and ANFCI will be updated on Thursday.

Entrepreneurial activity among minority individuals has been on the rise in recent years, contributing to an increase in jobs and economic growth (Bernard and Slaughter, 2004). Minority-owned firms, however, continue to face many challenges, particularly those related to access to start-up funding and expansion capital that undermine their longevity or survivability. As minority entrepreneurs increase their presence in the business sector, their success or failure reverberate even more into the broader economy. Policymakers need timely information in order to design effective policies to help address the needs of firms that are viable.

 

We analyze trends in minority self-employment and small business growth, as well as business start and exit dynamics. We also analyze available data to gauge the trends in financing and resources used by business owners for start-up and expansion of their ventures. The analysis is primarily descriptive, and we rely on...

The Federal Reserve Bank of Chicago invites you to a virtual convening on Minority Middle Neighborhoods in a Time of Crisis. The event will take place on Wednesday July 29 from 12 pm – 1 pm CT.

This forum is part of Project Hometown, a new initiative from the Chicago Fed that aims to foster discussion around the challenges and opportunities confronting hometowns in the Seventh District.

Chicago has a rich history of minority "middle" neighborhoods. These are neighborhoods that for decades had a large base of middle- and working-class residents, high rates of home-ownership, and active commercial corridors. But as places in the city have become more unequal, these predominantly minority neighborhoods have become increasingly vulnerable to economic shocks. Covid-19, the economic slowdown, and civil unrest have magnified the challenges.

Our goal with this forum, consistent with Project Hometown, is to bring together civic leaders, expert researchers...

The Federal Reserve Bank of Chicago invites you to a virtual convening on Minority Middle Neighborhoods in a Time of Crisis. The event will take place on Wednesday July 29 from 12 pm – 1 pm CT.

This forum is part of Project Hometown, a new initiative from the Chicago Fed that aims to foster discussion around the challenges and opportunities confronting hometowns in the Seventh District.

Chicago has a rich history of minority "middle" neighborhoods. These are neighborhoods that for decades had a large base of middle- and working-class residents, high rates of home-ownership, and active commercial corridors. But as places in the city have become more unequal, these predominantly minority neighborhoods have become increasingly vulnerable to economic shocks. Covid-19, the economic slowdown, and civil unrest have magnified the challenges.

Our goal with this forum, consistent with Project Hometown, is to bring together civic leaders, expert researchers...

Community Development and Policy Studies (CDPS) works to improve the socioeconomic prospects of low- and moderate-income (LMI) people by helping to facilitate the flow of credit and financial services to their communities. This is accomplished by monitoring credit conditions within communities, but also by noting the emergence of financial products and services with the potential to remove barriers to asset accumulation and financial stability for vulnerable populations1. Individuals with physical and mental handicaps are more likely to be unemployed and twice as likely to be poor, than someone without a disability. In addition to lower earning rates, the disabled have lower savings rates. According to a 2016 report from the National Disability Institute, 81 percent of people with disabilities did not have an emergency fund to cover three months of expenses, as compared to 54 percent of people without disabilities2.

A new savings and investment tool, the Stephen...

Our region’s communities have great strengths, but today face extraordinary challenges. Recovering from the pandemic will require an unprecedented effort. And racism and other barriers limit economic opportunities for too many people, even in good times. Project Hometown is the Chicago Fed’s commitment to engaging all of our communities as they confront these challenges. Project Hometown will bring together civic leaders, expert researchers, Chicago Fed staff, and concerned residents. Through these diverse perspectives, Project Hometown will examine how our hometowns can recover from the pandemic, overcome longstanding inequities, grow stronger, and provide all people with the opportunity to thrive.

Business and bank closures associated with the COVID-19 pandemic have significantly disrupted the supply chain and normal circulation patterns for U.S. coins. While there is an adequate overall amount of coins in the economy, the slowed pace of circulation has reduced available inventories in some areas of the country.

The Federal Reserve is working with the U.S. Mint and others in the industry on solutions. As a first step, a temporary cap was imposed on the orders depository institutions place for coins with the Federal Reserve to ensure that the current supply is fairly distributed. In addition, a U.S. Coin Task Force was formed to identify, implement, and promote actions to address disruptions to coin circulation.

As the economy recovers and businesses reopen, more coins will flow back into retail and banking channels and eventually into the Federal Reserve, which should allow for the rebuilding of coin inventories.

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In these uncertain times, it is more important than ever to understand the economic hardships of low- and moderate-income (LMI) individuals, particularly in the labor market. This article provides an overview of findings from intelligence-gathering initiatives to better understand the many barriers to employment confronting those in LMI communities. Importantly, these initiatives occurred in a time when the labor market was robust; however, they reveal challenges and hardships that shed light on how the Covid-19 pandemic may exacerbate LMI workers’ economic insecurity.

Section I discusses the LMI Survey, an Internet-based survey of community organizations that work directly with LMI individuals or in LMI communities. Section II highlights findings of focus groups convened in Kansas City, Chicago, Detroit, and Denver in order to continue this work. Section III focusses on specific themes that emerged from these discussions. The experiences summarized below, where...

Daniel Aaronson is a vice president and director of microeconomic research in the economic research department at the Federal Reserve Bank of Chicago. His recent research includes studies on female labor supply over the development transition, the long run impact of access to credit, and job loss associated with automation. His past research has been published in journals such as the Journal of Political Economy, American Economic Review, Review of Economics and Statistics, Economic Journal, Journal of Labor Economics, and Journal of Human Resources and has also been featured in Chicago Fed research publications, including Economic Perspectives and Chicago Fed Letter.

Prior to his current position, Aaronson served as an economist, senior economist, and economic advisor in the economic research area. He began his career at the Chicago Fed in 1996. He is currently an adjunct professor at Northwestern University’s Kellogg School of Management.

Aaronson...