Federal Reserve Bank of Boston President Susan Collins visited Newport, Providence, and Cranston on Wednesday to understand the economic challenges and successes in Rhode Island. During her trip, she engaged with local business leaders and nonprofit organizations.
Newport, known for its opulent mansions, also faces significant poverty. Joe Pratt, CEO of the Boys and Girls Club of Newport County, highlighted this disparity: “Newport is thought of as wealthy, but it has this huge pocket of poverty that people don’t necessarily see.”
Collins underscored the importance of firsthand discussions in shaping her policy recommendations. "A lot of data is actually talking about what happened in the past," she said during a meeting with business leaders in Providence. "And so, I find it really invaluable to listen and hear from people."
In Newport’s North End neighborhood, where poverty rates are notably high, Collins toured public housing developments and met residents at the Florence Gray Center. She learned about the legacy of the Working Cities Challenge (WCC), a community development initiative that began there in 2017.
Ellen Pinnock shared how WCC influenced her life positively. "These are all things I never would have seen myself doing if I didn’t get empowered by the people that were part of Working Cities," she stated.
Earlier in Providence, Collins attended a roundtable at the Rhode Island Black Business Associations (RIBBA) Equity Hub. Participants discussed support for small businesses through collaboration rather than competition. Lisa Ranglin, CEO of RIBBA, emphasized this shift: “We’re no longer competing but rather we’re collaborating.”
Weayonnoh Nelson-Davies from The Economic Progress Institute stressed the need for more technical and financial support for microbusinesses: “Our business owners in this state need more technical support...to really be able to scale up.”
At AAA Providence headquarters later that afternoon, executives from larger businesses expressed concerns over hiring difficulties and economic pressures such as high interest rates and inflation. John Fernandez from Lifespan mentioned recruitment challenges while David Hardy from Orsted noted how these factors impact capital-intensive projects like offshore wind farms.
Laurie White from Greater Providence Chamber of Commerce queried whether the Fed might reconsider its 2% inflation target amid rising interest rates aimed at controlling inflation. Collins responded firmly against any immediate changes: “The middle of bringing inflation down after such a big spike to me is not the time to talk about moving the goal posts.”
Jay Lindsay
Jay Lindsay is a member of the communications team at the Federal Reserve Bank of Boston.
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