📉 Main Takeaways from May 2025 Personal income dropped by $109.6 billion (−0.4%) , driven mainly by lower government social benefits and a decline in farm proprietors’ income. ( bea.gov ). Disposable personal income fell by 0.6% , while consumer spending edged down 0.1% . Government transfers (e.g., Social Security, SNAP, Medicaid) fell —impacting individuals who depend heavily on them . ⚠️ Potential Impacts on Black & Minority Businesses 1. Thinner Consumer Wallets Black and minority entrepreneurs often serve communities where residents rely more on government benefits. A reduction in transfers and disposable income means: Lower foot traffic at local shops Fewer discretionary purchases on services like haircare, dining, or childcare 2. Slower Spending on Goods Goods spending dropped by $49.2 billion (services rose slightly), suggesting discretionary goods—key revenue for many minority-owned retailers—are getting squeezed. 3. Supplemental Income Drop ...
Chairman Powell, center. Connor Stout, right, front row in white shirt. Federal Reserve Board Chairman Powell’s opening remarks addressed the state of the economy, which he said was “solid”. He reiterated the Federal Reserve’s dual mandate to ensure price stability (inflation control) and maintain near-full employment. To this end, Mr. Powell said that, currently, inflation remains a non-issue, and the labor market is near maximum employment. Furthermore, the Chair attributed strong Q1 figures to ‘front-loading’ – increases in imports and consumption in preparation for potential price shocks due to tariffs. Mr. Powell stood by the Fed’s decision to hold rates steady earlier this month and noted that the Federal Reserve will act largely based on the impacts of tariffs, noting the lag between the instatement of a tariff and when its effects become observable (as early as Q3). For the moment, the economy is in a good place, and the risk of recession is perhaps overstated. Howe...