Elevate Rapid City’s economic forecast luncheon recap
RAPID CITY, S.D. (KEVN) - Elevate Rapid City hosted its monthly luncheon on July 7 and the topic was the economic forecast. Erick Garcia Luna, a representative from the Federal Reserve Bank of Minneapolis was the speaker.
Garcia Luna discussed the flow of the economy in our region and the struggles people have been experiencing, like fuel costs, housing, and childcare. He also touched on employment and the crisis businesses are battling. Prior to the pandemic, labor force participation was on the decline and the pandemic dramatically sped that up. However, after the pandemic, workforce has not bounced back, like consumer spending. Garcia Luna said that one of the reasons that this could be happening is people choose to retire early due to workplace conditions, especially in customer service industries. Elevate Rapid City CEO says the low workforce participation, pandemic recession, high consumer spending, and an overheated economy all lead us to where we are today.
“You combine that with a stimulus package, you’ve got a lot of consumption, and then with supply chains, some of the problems we’ve had there, keeping up with the demand.,” explained Tom Johnson, President/CEO for Elevate Rapid City. “You see that leading to some of the inflation that you have today and then what are we going to do about it, I think you heard him allude to the fact that we’ve got to decrease some of that heat.”
The representative from the Federal Reserve in Minneapolis said another interest rate hike is likely to cool inflation.
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