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GDP Surges 3.4%, Inflation Persists: Minority Businesses Face the Trump Triple Squeeze

The U.S. economy is growing faster than expected, but that does not mean Black and minority-owned businesses are benefiting equally. Three major economic developments this week—the Federal Reserve's interest-rate decision, third-quarter GDP growth, and September inflation data—reveal an economy increasingly divided between strong aggregate growth and mounting financial pressure on smaller businesses. Federal Reserve Holds Rates Steady On October 28, the Federal Reserve voted 10–2 to maintain its benchmark interest rate at 3.75%–4.00% , citing continued inflation concerns. Two policymakers favored an additional quarter-point increase. For Minority Business Enterprises (MBEs), the decision means borrowing costs remain elevated. Many smaller firms face substantially higher financing rates than the Fed's benchmark, limiting their ability to purchase equipment, finance inventory, hire employees, and expand operations. GDP Accelerates to 3.4% On October 29, the Bureau of Economic Ana...
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Black Household Wealth Plunges 25%: A Warning Sign for the U.S. Economy

New data from the Federal Reserve reveal a troubling development in the American economy: median Black household wealth declined by approximately 25% between 2022 and 2025, even as other major racial and ethnic groups experienced wealth gains. According to an October 13, 2026, analysis by Algernon Austin of the Center for Economic and Policy Research (CEPR), median Black household net worth fell from $49,100 in 2022 to just $36,800 in 2025—a loss of $12,300. The findings, based on the Federal Reserve's newly released Survey of Consumer Finances, suggest that the economic progress achieved by Black households in recent years is reversing. Black Wealth Is Falling While Other Groups Gain The figures illustrate an extraordinary disparity. In 2025, the median White household held approximately nine times the wealth of the median Black household. The Black household median was also $179,100 below the national median, compared with a gap of $162,000 in 2022. This is not simply a statistic...

September PPI Surges 1.3%: Another Inflation Shock for Black and Minority-Owned Businesses

The September 2026 Producer Price Index (PPI) confirms that inflation is accelerating again, creating serious challenges for Black and minority-owned businesses already struggling with higher borrowing costs, tighter margins, and declining procurement opportunities. According to the U.S. Bureau of Labor Statistics, producer prices surged 1.3% in September, the largest monthly increase since March 2022. Prices increased 6.3% over the past year , the highest annual rate since December 2022. The September increase follows a revised 0.5% increase in August and a 0.2% increase in July. For minority business enterprises (MBEs), the numbers suggest another period of rising costs, reduced profitability, and increased financial pressure. Energy and Transportation Costs Are Surging The September report reveals particularly troubling increases: Final-demand goods: +2.6% Energy prices: +10.8% Gasoline prices: +20.3% Transportation and warehousing services: +3.4% Final-demand services: +0.8% ...

September Consumer Inflation Accelerates to 3.7%: Black and Minority-Owned Businesses Face a Growing Cost Squeeze

Surging gasoline prices, persistent service inflation, and higher borrowing costs threaten minority-business profitability as the U.S. economy confronts renewed inflationary pressure. The September 2026 Consumer Price Index confirms that inflation is accelerating again, raising serious concerns for Black and minority-owned businesses already facing elevated operating expenses and limited access to affordable capital. According to the Bureau of Labor Statistics, consumer prices increased 0.6 percent in September , following a 0.4 percent increase in August. Annual inflation rose to 3.7 percent from 3.4 percent , while core inflation, excluding food and energy, increased to 2.6 percent year-over-year . These numbers reinforce our earlier concerns that inflation was not disappearing. It was shifting between categories, with energy prices once again becoming a major source of economic instability. Energy Inflation Is the Immediate Threat Energy prices increased 5.2 percent in September and...

Steel and Silicon: The Future of U.S.-EU Innovation. Labiba Rifah Nanjeeba, Bard College.

Steel and Silicon: The Future of U.S.-EU Innovation On October 8, 2026, the Center for European Policy Analysis (CEPA) hosted “Steel and Silicon: Allied Innovation for the Next Century” at the Embassy of Sweden in Washington, DC. The event focused on U.S.–Sweden trade relations, technological advancement, AI policy, and cooperation between the European Union and the United States. With Sweden ranking as the ninth-largest foreign investor in the U.S., the conversation centered on strengthening the two countries’ trade and commercial ties. Congressional AI Priorities The first panel brought together U.S. representatives to discuss technological advancement, particularly in AI. Speakers stressed the urgency of AI development, noting that China is only about six months behind the United States. They described this as a bipartisan concern, pointing to China and Russia as shared challenges. While they viewed AI advancement as essential, they also emphasized safety and security. They highligh...

Where does the US stand today, and where do we want to go? Julia von Rueden, American University

The American Growth Summit at the Willard Hotel on September 29 offered deeper insights into the current economic situation of the United States and into future developments. Under the overarching theme of growth, the discussions focused in particular on AI and innovation, trade, tariffs and the relationship with China, as well as work and education. AI and innovation: The general mood toward AI was strikingly positive. Senator Mike Rounds pointed to its potential in healthcare, and Siemens stressed that it is not only about developing AI but about implementing it in the real world. To do that, employees have to be trained first. Nick Andersen spoke about security "of, with and from AI" and about how AI can expose bad decisions. From the government side, the message was that innovation is moving faster than ever. Companies should keep innovating, and policymakers want to stay out of the way as much as possible. At the same time, there was a warning against complacency, becau...

Wo stehen die USA heute und wo wollen wir hin? Julia von Rueden, American University

Der American Growth Summit im Willard Hotel am 29. September hat tiefere Einblicke in die aktuelle wirtschaftliche Lage der USA sowie in zukünftige Entwicklungen gegeben. Unter dem Hauptthema Wachstum wurden insbesondere die Themen KI und Innovation, Handel, Zölle und die Beziehung zu China sowie Arbeit und Bildung behandelt. KI und Innovation: Die Grundstimmung gegenüber KI war auffallend positiv. Senator Mike Rounds verwies auf das Potenzial im Gesundheitswesen, und Siemens betonte, dass es nicht nur darum geht, KI zu entwickeln, sondern sie in der realen Welt umzusetzen. Dafür müssen zuerst die Mitarbeitenden geschult werden. Nick Andersen sprach über Sicherheit „of, with and from AI“ und darüber, dass KI schlechte Entscheidungen sichtbar machen kann. Von Regierungsseite hieß es, Innovation sei gerade so schnell wie nie. Unternehmen sollen weiter innovieren, die Politik will dabei möglichst nicht im Weg stehen. Gleichzeitig wurde vor Selbstzufriedenheit gewarnt, denn in China entste...