Issue #32 | March 25, 2020
Recently, from the Cleveland Fed
Cleveland Fed open and operating; updates available
The Federal Reserve Bank of Cleveland is open and operating to support the region it serves amid the COVID-19 pandemic. Find resources and information on our website. For the latest on Fed actions to support the economy, visit the Board of Governors
Wages are rising, so why is the middle class still feeling the pinch?
Since 1980, wages for the middle class have risen, but the perception persists that it’s getting harder for today’s adults to maintain the lifestyles their parents did. Cleveland Fed researchers examine this issue to see if the data back up this sentiment. See the Economic Commentary.
From Hamilton and Burr to now: The evolution of bank capital requirements
Since the first banks in the United States were founded, there have been capital requirements—rules about how much cushion banks must hold against unexpected losses. These rules help strengthen banks against losses and economic shocks. Learn the history of these regulations and see why and how they continue to evolve.
Do affirmative action bans cause students to move to attend college?
With more states banning affirmative action, some wonder if these bans affect the interstate movements of college students. Dig into this Economic Commentary to find out how admissions policies in one state can affect the student populations of another.
Why is every person’s ability to recover from financial setbacks important to the Federal Reserve, and are there resources you recommend to ready people for the unexpected?
I realized at a very young age the importance of being prepared for unforeseen financial circumstances. Growing up, my mother always talked about how her parents, especially her father, instilled in her the importance of having your own resources because “life happens.” My parents separated when I was 7, when my mother found herself in a situation that wasn’t healthy for her and me. Because she had gone to college, because she had embraced the mindset that even as a married woman it was wise to have her own financial means, she was able to leave and make a better life for us.
It was around high school when I started realizing the impact of what financial knowledge could do to help people improve their standing in life and be independent. Education is a huge component of that. I’ve always been passionate about finding ways to help the people around me, and that’s led me down the career path to community outreach.
One aim of the Federal Reserve is a stable financial system. You can’t have a financially healthy community if people don’t have basic knowledge about what financial health is or how to get there. It’s important that all people are empowered to make informed choices. When people don’t know what financial health looks like and aren’t prepared to recover from financial setbacks, they can end up relying on the help or generosity of others to stay afloat.
In our Education & Museum Outreach department, one of our goals is to teach people of all ages about various topics ranging from the basics of money to preparing for the future. Our Great Minds Think interactive workbook, available in English and Spanish, teaches kids and their parents the basic foundations of personal finance; it offers young learners a place to dream about things they’d like to save for, and it stresses the importance of budgeting and saving.
For young people and adults, the Building Wealth workbook from the Federal Reserve Bank of Dallas is among the Fed’s most popular personal finance resources. And the Atlanta Fed offers Katrina's Classroom: Teaching Money Skills for Life, a series framed around the aftermath of Hurricane Katrina with the theme of emergency and financial preparedness. All three are among the free resources available at federalreserveeducation.org.
is a regional education outreach coordinator for the Cleveland Fed who connects with students, educators, and other stakeholders to spread the word about the Fed’s free educational resources.
On the Calendar
2020 Reinventing Our Communities Conference: Equity InSight (Philadelphia, PA)
From around the Federal Reserve System
No Turning Back: The Growth of Black Female Entrepreneurs
Business ownership has grown faster among black women than among any other demographic in the United States during the past two decades. The Kansas City Fed released a report based on national data and a series of interviews with black women business owners.
Read the report
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