What a Fed President Hears When He Goes on the Road
May 6, 2024
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Tom Barkin, Richmond Fed President, travels to North Carolina to gather real-time economic data from local businesses. Discussions include inflation, labor market, and challenges facing smaller towns. They visit a carport manufacturing company, a thermal underwear producer, and a yarn spinning business. Insights on workforce shortages, price pressures, and economic shifts are shared.
Richmond Fed President Barkin conducts listening tours to gather economic insights from local businesses.
Challenges faced by businesses range from labor shortages to supply chain disruptions and housing needs.
Economic impacts differ for large and small businesses post-pandemic, emphasizing the importance of supply chain resilience and pricing strategies.
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Tom Barkin on Listening Tours and Economic Insights
Tom Barkin, the president and CEO of The Richmond Fed, embarks on listening tours to visit businesses in his district, seeking insight into inflation, labor markets, and economic outlook. Conversations with executives reveal challenges like labor shortages, housing needs, and supply chain disruptions.
Business Insights from a Fed President's Listening Tour
From carport businesses to textile manufacturers like Indira Mills and Unify, diverse companies share their experiences amid economic fluctuations. Challenges range from pricing pressures to labor shortages, impacting strategies like refinancing debt and diversifying supply chains.
Economic Challenges and Industry Responses
Economic impacts vary between large and small businesses, with larger companies benefitting from refinancing and automation investments, while smaller firms face constraints like bank lending limitations and pricing challenges. Supply chain resilience, labor scarcity, and pricing strategies remain key considerations post-pandemic.
Navigating the Complexities of Economic Scenarios
The economic landscape post-pandemic presents nuanced challenges, from labor shortages to supply chain disruptions. While businesses adjust to pricing pressures and supply chain intricacies, the Fed navigates balancing inflation concerns against economic growth across diverse sectors and regions.
The Federal Reserve has a lot of official statistics it can look at to try and gauge the state of the overall economy. But there's also room for incorporating on-the-ground anecdotes and real-time color. When it comes to collecting this kind of information, Richmond Fed President Tom Barkin might be the biggest road warrior on the FOMC. In mid-April, Odd Lots tagged alongside Barkin as he undertook one of his many trips around his district, speaking to local businesses about what they're seeing in terms of inflation, consumer demand, and the labor market. We traveled with him to North Carolina, making stops in Mount Airy, Winston-Salem and Yadkinville, to better understand what it is that a regional Fed president actually does when he's collecting info on the ground, and how it informs his thinking. It's a rare inside look at the day-to-day work of a Fed president. In this episode, you'll learn what kind of questions Barkin is asking businesses. And you'll learn about some local businesses themselves — everything from carport manufacturing to producing thermal underwear to spinning yarn. We also take a look at some of the big picture challenges facing America's smaller towns, including shrinking populations, a shortage of housing, and the scarcity of essential services like childcare.