In 2025, the Federal Reserve Bank of Boston focused on several key issues affecting New England and the broader U.S. economy. Among the topics highlighted were the challenges facing rural health care in northern New England, the impact of generative artificial intelligence (Gen AI) on financial fraud, and the region’s economic adaptation to global volatility.
A feature by the Boston Fed examined declining access to health care in rural areas of northern New England. Residents face increasing distances to medical facilities, raising concerns about timely access to care. Brianna Lareau, a resident of Piermont, New Hampshire, shared her experience: “Two days after giving birth, you’re barely able to walk. The idea of having to travel again – I just broke down. … I’ve heard some wild stories about people having to drive two-plus hours to get to the hospital.”
Boston Fed President and CEO Susan M. Collins traveled across Rhode Island, Maine, Massachusetts’ South Coast, New Hampshire, and Vermont during the year. She met with community members as well as business and labor leaders to discuss pressing economic issues such as rising costs and labor shortages. Collins noted ongoing efforts within firms: “We’re doing a lot of thinking about how firms are meeting strong demand with fewer workers, and without hiring, and really connecting that to a couple of things – (including) all the uncertainty that’s out there.”
The bank also addressed growing concerns over synthetic identity fraud driven by Gen AI technologies. Losses from this type of fraud surpassed $35 billion in 2023. Mike Timoney, vice president for secure payments at the Boston Fed stated: “Synthetic identities are a threat that Gen AI amplifies, but the more we look for these fake identities, the better we’ll see them, and the safer the payments system will be.”
Another area of research showed significant growth in loan commitments from large banks to private equity and private credit funds—from approximately $10 billion in 2013 up to $300 billion by 2023. John Levin, senior markets specialist at the Boston Fed explained: “We use regulatory data from large banks to examine these lending relationships, (and) we found through our analysis that they are growing and warrant continued monitoring.” This trend points toward increased attention needed from regulators regarding potential risks.
At its 69th Economic Research Conference titled “The U.S. Economy in a Changing Global Landscape,” researchers explored how America is adjusting amid greater global fragmentation and risk. Collins commented: “The increase in global risks and the movement toward greater economic fragmentation will likely be major, transformative, and intertwined forces shaping our economic landscape in the coming years.”
Amanda Blanco contributed as part of Boston Fed’s communications team.
