Federal Reserve Banks across the country collect anecdotes from contacts and address concerns Federal Reserve Beige Book Summary, published eight times per year. Historically, insights into conditions affecting low- and middle-income communities have come from a business perspective. Several Reserve Banks including “Community Status” and “Community Perspectives” sections In the fall of 2022. These sections provide insight into local changes through first-hand accounts of nonprofit and community leaders and workforce professionals serving low-income people. There are some takeaways from here October 2024 Beige Bookwhich was prepared Federal Reserve Bank of New York and based on data collected on or before October 11, 2024.
Please note that the beige book summarizes comments received from contacts outside The views of the Federal Reserve and Federal Reserve officials are not a comment.
“Community leaders have expressed concern about increasing food insecurity as the number of recipients for programs that distribute food and financial assistance continues to grow. Delays in processing benefit programs combined with sustained high food prices post-pandemic have weighed on members of certain income communities, including the elderly, low-income and student populations. Direct funding of food programs from state and local governments for school-aged and older persons has provided stopgap funding where federal funding has been delayed or discontinued.”
– New York FedFederal Reserve 2n.d District, community perspective
“Nonprofit contacts reported a deterioration in the financial well-being of low- and moderate-income households and the availability of affordable housing over the past six months, according to a semi-annual survey. One contact noted that higher costs for basic needs led to borrowing money from family or friends or taking out credit. or forced to rely on short-term loans. Several contacts noted that rising rents have limited affordable housing options for low- and moderate-income households, while some contacts expressed concern about the impact on short-term rentals, especially in areas around tourist spots. One contact also noted that construction of new affordable housing units has been held back by the high cost of construction materials and financing.”
– Cleveland FedFederal Reserve 4m District, community status
“Community, nonprofit, and small business contacts saw little change in economic activity but were somewhat optimistic about future economic conditions. State government officials again saw a healthy increase in tax revenue. Small business contacts in affordable housing development commented that continued high costs, including labor and insurance, Profit margins are squeezed and project planning is disrupted. Philanthropy leaders cite an increase in grant requests, as nonprofit grantmakers manage higher operating costs. and sought to meet basic community needs, including food. Community contacts also reported increases in homelessness as well as utility arrears, both indicators of housing challenges facing low-income community members.”
– Chicago FedFederal Reserve 7m District, community status
“Contacts report that staying connected to the Internet has become more challenging for the low and moderate income (LMI) population, exacerbated by the end of the Affordable Connections plan earlier this year. Digital access agencies say many households choose to maintain their Internet connections through discount plans offered by Internet service providers (ISPs) or by reducing the quality of the plans. They cited uncertainty about how long households would maintain service amid other cost constraints and limited funding from Internet subsidies. Regarding ISPs' discount plans, contacts highlighted variability in access and reliability in service areas. Furthermore, they noted that some ISPs have expressed concern about the financial sustainability of some infrastructure projects aimed at improving Internet access at the expense of low-income Internet customers.”
– Kansas City FedFederal Reserve 10m District, community status
“Nonprofit service providers have noted continued strong demand for social services. The availability of safe and affordable housing was a top concern, and demand for funds for home repair or weatherization among low-income clients was reported, especially after recent severe weather events. Contacts cited rising aid requests from seniors, which they attributed to inflation. One nonprofit reported increasing vacancies in its seniors-only housing facilities, as seniors reentering the workforce out of economic need, disqualifying them for these low-cost units. Some nonprofit leaders have expressed concern about inflation and interest rates, an indication that increased confidence has led them to move forward with capital investments. However, others said that economic and electoral uncertainty has created hesitation among some donors to give.”
– Dallas FedFederal Reserve 11m District, community perspective
“Demand was high for community support services, particularly health-care, food, housing and workforce development. Contacts said the workers were seeking training to get higher-paying jobs. Some in the community focused on cost over quality when seeking mental health services. The availability of funding for non-profit organizations from government grants, the private sector and individual donors has declined. Contacts reported that some small businesses in Hawaii, such as food service and retail, continue to face challenges with low consumer demand. Some of Utah's new small business owners wanted help getting funding and business operations training. A contact noted that high demand for shelters and community services has attracted interest from some for-profit entities to enter the market.”
– San Francisco FedFederal Reserve 12m District, community status
visit October 2024 Beige Book A complete national summary and more information on economic conditions reports from each Reserve Bank, including the labor market, financial services, real estate and more.