Federal Reserve Bank of Philadelphia

Philadelphia Fed President Patrick Harker, Bill Spaniel, Erin Mierzwa, and Olivia Ness traveled to Altoona, PA today to discuss workforce and economic development initiatives. Thank you to Blair County Alliance for Business and Economic Growth, Saint Francis University, and Curry Rail Services for providing key insights on the regional economy.

Community banks routinely rely on third parties for a range of products, services, and other activities. Third parties can provide banks with access to new technologies and products; however, they may introduce new risks or increase existing risks to a bank. The guide is a resource for community banks to consider in managing the risks associated with third-party relationships. The guide also addresses potential risk considerations, information resources, and examples for managing a bank’s third-party relationships. It covers the following: • Risk Management: Discusses risk considerations • Third-Party Relationship Life Cycle: Explains the five stages of the life cycle • Governance: Provides considerations for a bank’s governance over third-party relationships • Appendix: Provides references to additional resources and guidance https://bit.ly/3LkkFMm #riskmanagement #thirdpartyrisk #federalreserve #communitybanks

We are pleased to announce the upcoming Eighth Annual Fintech Conference on October 22-23, 2024. Save the date to join us for this unparalleled gathering of fintech leaders and industry experts discussing emerging topics in financial technology. Follow us to be the first to know when registration opens. If you missed last year’s event, you can find the recordings at https://bit.ly/45D17Ms

On this Fourth of July, let us remember the ideals of freedom and equality for all as we celebrate our nation's independence. Happy Independence Day!

Economic educators from the Federal Reserve welcome elementary school teachers for a one-day professional development program that introduces lessons for teaching students about money, and other economics and personal finance concepts using children’s literature. The lessons demonstrated in this program provide educators with grade-level appropriate activities for teaching about decision-making, spending and saving, allocation methods, opportunity cost, scarcity, and productive resources. Learn more and register to join us on Wednesday, July 31. https://bit.ly/3wGIha8 Participants who complete the session will receive 6.50 hours of professional development credit (Act 48 in Pennsylvania for certified teachers) and copies of children’s books and all lessons. Breakfast and lunch will be provided. Participants can request free parking during the registration process. #EconomicEducation #ProfessionalDevelopment #FinancialEducation #ElementaryEducation #ChildrensLiterature

Join us in welcoming Pete Ruggiero, president and CEO of Crayola, to our Economic and Community Advisory Council (ECAC). Ruggiero joins the ECAC in place of Rich Wuerthele, following his retirement from Crayola. https://bit.ly/4cFzRiH

Boston Fed President and CEO Susan M. Collins and First Vice President Karen Pennell joined other leaders from across the Federal Reserve System on a visit to Chelsea, Mass. They learned about local economic conditions and the lasting impacts of the Bank’s Working Cities Challenge. Chelsea received a three-year grant in 2014 through the challenge, which focuses on promoting economic development in smaller, post-industrial cities. Read the full recap: https://bit.ly/45IGpuG

Most small businesses across our region reported that their financial conditions were either poor or fair in 2023, according to data from the Fed’s Small Business Credit Survey conducted in the fall of 2023. Four new briefs provide a snapshot of small business conditions in Pennsylvania, New Jersey, the Philadelphia metro area, and the Third District states overall (Delaware, New Jersey, and Pennsylvania). Here’s what small business owners said about the conditions in 2023: • The biggest operational challenges were hiring or retaining qualified staff, reaching customers or growing sales, and supply chain issues. • The biggest financial challenges? Rising costs of goods, services, and/or wages; paying operating expenses; uneven cash flow; and weak sales. https://bit.ly/3zcSXOF

Respondents to the April 2024 Labor, Income, Finances, and Expectations (LIFE) Survey report slightly more concern about making ends meet in the coming year, when compared with January 2024. Targeting a cross-sectional sample of U.S. adults, the survey finds also finds: • Most of the increase in concern about making ends meet came among those who can currently pay all of their bills. This group reported significant increases in worry compared with both the previous quarter and the previous year. • Respondents in April 2024 were less positive about their income prospects than respondents in January 2024, but they remain more positive than respondents from one year earlier. • Exposure to illness remains the most reported concern about working in the next 30 days for employed respondents; accessing reliable transportation and employer cutting my job increased the most since January 2024. • One-half of all respondents reported experiencing a financial disruption in the prior 12 months (virtually unchanged from January 2024), with significant nonmedical expense remaining the most reported disruption. https://bit.ly/3VEcQ8Z

Anchor institutions are large, public-facing, public-serving institutions whose jobs and services support local economic activity. They are often among their area’s biggest employers and major purchasers of goods and services, but they also serve as critical partners in economic and community development. For example, in 2019, anchor institutions supported 569,500 jobs in New Jersey, generated nearly $44 billion in employment income, and contributed more than $65 billion to the state’s gross domestic product (GDP). Check out this Fed Communities blog written by Deborah Diamond, director of the Anchor Economy Initiative at the Federal Reserve Bank of Philadelphia and explore the Anchor Economy Dashboard to see how these institutions impact your local area. https://bit.ly/3XCuDzZ