How are New England residents coping with economic uncertainty, and what are the impacts of inflation on local labor markets?

These were a few of the key questions Federal Reserve Bank of Boston leaders joined community members from across the region to explore at the latest Fed Listens event on Tuesday.

Fed Listens is an event series that brings policymakers together with local businesses, labor unions, nonprofits, and others to discuss the everyday impacts of monetary policy on residents’ lives. Tuesday’s discussion was held in Keene, New Hampshire, and also included participants from Vermont, Massachusetts, and Rhode Island.

Boston Fed President and CEO Susan M. Collins said that Bank leaders chose to meet with residents out in the community, rather than in downtown Boston, to gather a wide range of on-the-ground perspectives through in-person conversations.

“Our goal today … is to deepen our understanding of the challenges and opportunities facing your organizations, your communities, and our region,” Collins said.

Local leaders share impacts of rising costs, shifting economic conditions

Boston Fed Director of Research Egon Zakrajšek, principal economist and policy advisor Chris Foote, and Research Vice President and economist Daniel Cooper hosted group discussions about the impacts of current economic conditions on local communities.

Business, labor, and nonprofit leaders shared how New England residents have been impacted by inflation over the past few years.

During one discussion, Larry Moquin, the president of Vermont AFL-CIO, told Collins that rising health care and housing costs are among the top factors affecting local workers and families.

“We’ve dealt with inflation, but wages haven’t kept up,” said Moquin, who also serves as the business manager of Laborers' Local 668, a union that covers most of New Hampshire and all of Vermont. “There’s not really a ‘work’ shortage, there’s a ‘wage’ shortage.”

Sam Temple, owner of Fire Dog Breads bakery in Keene, New Hampshire, shared how his business shifted ingredient-sourcing strategies following the COVID-19 pandemic. He said supply chain disruptions for items including butter, eggs, and grains led the business to turn to local suppliers. While these suppliers may be more expensive, Temple said he’s willing to pay for their reliability.

He added that costs of living in Keene are rising, and that’s the biggest issue for his employees.

“We've decided to reduce our profit margin a little bit so that we can make sure our staff are getting close to a living wage,” Temple said.

Nonprofit organizations are also feeling the impacts of inflation, said Julianna Dodson, the executive director of the Hannah Grimes Center for Entrepreneurship, which hosted the Fed Listens event in Keene.

“Our operation costs have gone up significantly, and … individual funders don't necessarily increase their gifts to match that,” she said.

Dodson added that the center is emphasizing agility and creativity as it looks to support solutions for community challenges, like the housing shortage.

“Our population really hasn't grown, and yet, the housing problem is getting worse,” she said. “It's because fewer people are living in larger homes, and there's not as many to go around. So, we're advocating for creative models like shared housing.”

Collins visits Vermont, tours lumber company

After the Fed Listens event concluded, Collins visited Vermont to attend part of the Southern Vermont Economic Summit in West Dover. Then, she joined employees of Cersosimo Lumber Company in Brattleboro to learn more about the industry and tour their facility. Check out photos from the visit: