Economy Matters

As the Federal Reserve, the nation's central bank in Washington, DC, reviews its strategic framework for guiding the nation's economy, the Atlanta Fed convened panelists for a listening session on June 4, 2025. The participants, representing a variety of industries and nonprofits around the Sixth District, were asked to describe their views of the southeastern economy as it recovers from the pandemic and high inflation and confronts the impacts of war and economic uncertainty.

To help inform the discussion at the Federal Open Market Committee (FOMC), Atlanta Fed president and CEO Raphael Bostic said participants at the Fed Listens event in Atlanta shared "perspectives on labor market conditions, inflation, and the barriers and opportunities to broad economic vitality." A webcast of the session is available here.

Fed Governor Lisa Cook, who co-moderated the discussion, observed that while hard data is important in determining monetary policy, "another extremely valuable input comes from people, like you, who can tell us how the economy is playing out in their daily lives as they make purchases, consider investments, and think about employment options. That is why I especially value these opportunities."

With that, 11 participants began a 90-minute session guided by Bostic and Governor Cook, who took turns posing questions to participants.

Bostic began the conversation by asking about the job market over the past year. Participants described the labor supply as tight and fueling wage hikes in the competition for skilled workers in sectors including healthcare and construction. Those with payroll restrictions couldn't fill open jobs in childcare and teaching positions in technical education.

Lili Henson, CEO of Piedmont Augusta, part of the Piedmont Healthcare group, said the national nursing shortage is exacerbated in her region by competition from about seven hospitals seeking to hire nurses and other healthcare workers. Phil Tague, president of Amli Residential, said the apartment developer views labor costs as fueled by the shortage of skilled construction workers in a sector that has shed a third of its pre-Great Recession workforce of about 7.5 million individuals.

Governor Cook followed up with a question on wages and the availability of jobs and workers. One participant described wage gains as a drag on the number of jobs available. Another said the rate of pay hikes has fallen. Others cited a shortage of skilled workers in multiple sectors and an increasing rate of worker fatigue and turnover.

Amelia Nickerson, CEO of the nonprofit First Step Staffing, said hourly wages in Atlanta have increased from about $8.25 in 2018 to about $14 now. Nickerson said this is "wonderful for the people we're helping," but added this caveat: "there are fewer jobs and fewer movements of people moving out of those jobs to bring in a new pipeline of people." Kyle Waide, CEO of the Atlanta Community Food Bank, said the rate of wage gains seems to be "moderating significantly" during a time the number of people served by the ACFB has increased 60 percent, compared to three years ago.

On the issue of the effect of inflation on small businesses and entrepreneurs, participants described clients as feeling the strain across income levels, though the strain is more pronounced among low- to moderate-income customers. A majority foresee the already tight margins of small businesses being compressed because of the limits on passing higher costs to customers. Cash-flow shortfalls have spilled over to affect hiring.

Tariq Collins, CEO of Eagle Financial Group, an accounting firm focused on smaller businesses in cities along the East Coast, said inflation affects hiring by his clients because, while they can afford a salary, "maybe they can't afford all the bells and whistles, the benefits and higher wages," that prospects expect from an employer. Tripp Cofield, president and CEO of the Georgia Bankers Association, said, "We continue to hear from bankers, and they hear from their customers and clients, about the strain that inflation is putting on consumers and businesses alike, particularly the low- to moderate-income individuals in the smaller businesses."

Housing affordability was a topic that participants addressed from several perspectives. Residential developers cited rising costs for labor and time-consuming processes required to rezone land for construction. Those who work with small-business owners highlighted interest rates on loans that rose starkly during the period of inflation, while another panelist mentioned legal problems that can cascade following an occurrence of a household falling behind on payments.

Participants at the Federal Reserve Bank of Atlanta's Fed Listens event on June 4. Photo by Stephen Nowland

JD Espana, president and partner in Piedmont Residential, said labor and rezoning costs have contributed to the price hike of a home of 2,200 square feet, doubling to $410,000 compared to 2018. Martina Edwards, CEO and president of Access to Capital for Entrepreneurs, a community development finance institution that focuses on marginalized communities, said the inflationary impacts her clients face spill over to their ability to buy a home, because rising business costs reduce their ability to secure a mortgage. Kimbery Charles, deputy director of Atlanta Legal Aid, described unaffordable housing costs as a foundational problem for some: "If you have a legal housing problem, it is a money issue before it becomes a legal issue."

As panelists considered economic barriers faced by individuals, families, and businesses, they noted issues such as the financial hardships of young adults seeking technical education; childcare prices that are triple the proportion of household income recommended as affordable by federal guidelines, forcing some parents to drop out of school or quit work to care for a child; and farmers burdened by the costs of recovering from extreme weather events as they strive to secure operating loans at a time federal safety net programs are uncertain.

Governor Cook posed the close-out question, asking all participants to offer insights on the Fed's communications with the public, and the impact of the dual mandate. The summary:

• Several participants recognized and commended the Atlanta Fed for its role as a convenor of discussions important to them and their sectors.
• Cofield, president and CEO of the Georgia Bankers Association, requested the Fed's help in communicating about the issue of fraud affecting consumers.
• Nickerson, CEO of First Step Staffing, said employers appreciate the hard data released by the Fed, and she wants to see more anecdotal stories about how everyday lives are affected by the Fed.
• Henson, CEO of Piedmont Augusta, said the hard data released by the Fed is helpful in making decisions, along with informing efforts to help vulnerable employees stay in the workforce.

The Atlanta Fed forwarded these insights from the June Fed Listens event to the Federal Reserve in DC. The Fed considers the feedback collected in Atlanta and at other regional Reserve Banks in its routine review of its "Statement on Longer-Run Goals and Monetary Policy Strategy" (also referred to as the consensus statement). Bostic described the review in simple terms, saying it will help the FOMC decide "whether we need to refresh the basic underlying ways that we formulate and conduct and communicate our monetary policy."

The consensus statement is updated roughly every five years to provide the Fed's monetary policymakers with strategies, tools, and communications that keep pace with the evolving economy and the Fed's understanding of it, Fed Chairman Jerome Powell said at the Thomas Laubach Research Conference, hosted by the Fed's Board of Governors. The review incorporates comments and papers presented at the Laubach conference, comments from Fed Listens events throughout the country, and discussions among Fed policymakers informed by staff analysis at meetings of the FOMC.

Powell said the current review will consider possible enhancements to the policy communication tools regarding forecasts, uncertainty, and risk that are employed by the rate-setting FOMC. The review is to be completed this year.

Two aspects of the framework will not be altered. First is the Fed's commitment to fulfilling its congressionally assigned dual mandate of fostering stable prices and maximum sustainable employment. The other is the Fed's commitment to a two percent inflation target. These principles were codified in the initial consensus statement upon its adoption in 2012.

David Pendered

Staff writer for Economy Matters