This Week in ESG and Impact Investing

On December 10, 2025, the Federal Reserve lowered its federal-funds rate by 0.25 percentage points , bringing the target range to 3.50%–3.75% . Federal Reserve The Fed cited slower job growth, a rising unemployment rate, and still-elevated inflation as factors — choosing to act now to support employment, while leaving open further adjustments depending on future data.  For Minority Business Enterprises (MBEs)— most of which operate as small businesses — this decision has potentially significant consequences. Why rate cuts tend to benefit MBEs 💸 Lower cost of borrowing and improved cash flow When the Fed cuts its benchmark rate, banks often reduce their prime and lending rates in response — which tends to make loans, lines of credit, and business-credit cards cheaper.  For businesses with variable-rate debt, this lowers monthly interest payments automatically; for those seeking new financing, access becomes more affordable.  For many MBEs, with thin margins ...

The BEA’s December 5 2025 release reports the following for September: Personal income rose 0.4% vs August; disposable personal income (after taxes) rose 0.3%.  Consumers spent more: current-dollar personal consumption expenditures (PCE) increased 0.3%. But “real” PCE (adjusted for inflation) was essentially flat. The PCE Price Index — the broad inflation gauge for consumer goods and services — increased 0.3% month-over-month . On a 12-month basis, the PCE Price Index rose 2.8% .  Excluding volatile food and energy categories (the “core” measure), prices also rose 0.2% month-over-month and about 2.8% year-over-year.  In short: while incomes and nominal spending ticked up, inflation remains noticeable — pushing up costs for households and consumers. Inflation + Income: What That Means for Black & Minority-Owned Firms Because inflation directly affects the cost of goods, inputs, and consumers’ purchasing power, the rising PCE index has important imp...

The Producer Price Index (PPI) measures the average change over time in the selling prices that domestic producers receive for their output. According to the most recent release from the BLS, the PPI for “final demand” increased by 0.3 percent in September 2025 (seasonally adjusted). On a 12-month basis, it rose 2.7 percent . For goods alone (final demand goods), the increase was 0.9 percent for the month, largely driven by increases in goods such as gasoline (11.8 percent) and energy (3.5 percent). Services prices (final demand services) in that month were unchanged. ( Bureau of Labor Statistics ) Why should a minority-business owner care? Because PPI signals upstream cost pressures in the economy. Businesses that purchase inputs — raw materials, intermediate goods, energy, transportation — may face rising costs. And smaller or minority entrepreneurs often have less pricing power, smaller margins, less buffer to absorb cost increases. Key Implications for Black & Min...

The Bureau of Labor Statistic (BLS) “Employment Situation” report found that the overall U.S. unemployment rate held at  4.4 % in September, 2025 , with about 7.6 million people unemployed. ( Bureau of Labor Statistics ) Disaggregated by race, the report shows: Black workers: 7.5 % unemployment, with the rate for Black women growing from 6.7% in August to 7.5% in September. Hispanic workers: 5.5 % unemployment. White workers: 3.8 % unemployment. These gaps matter for minority business enterprises (MBEs), because labor market conditions for minority workers affect both the supply side (availability of talent, wage pressures) and demand side (consumer spending power, business formation). What this means for Black & minority‐owned firms A 7.5 % unemployment rate for Black workers implies that a larger share of the workforce faces unemployment, which may constrain firms in sourcing qualified staff, or create labor cost pressures if fewer skilled candidates are avai...

On the Black Economics podcast we explore the extended 2025 U.S. federal government shutdown (which began October 1) ( Wikipedia ) and its reverberations across our economy. For readers of ImpactInvesting.Online, the questions we must ask go beyond the headline fiscal impasse: What are the implications for underserved communities, minority‐owned enterprises, and the broader ambition of channeling capital toward impact? In the podcast and in this article, we surface three key takeaways — and propose how impact investors, policymakers and practitioners can respond. 1. The macro disruptor: economic data, market confidence & policy risk The shutdown interrupted delivery of federal economic data, weakened consumer sentiment and rattled markets. One recap notes: “the federal government shutdown worries were cited as a primary reason for the decline” in the University of Michigan’s consumer sentiment index. ( T. Rowe Price ) For impact investors, this matters because: Less transp...

There are many data collection crises that we, as workers and consumers, should be tuned into amid this era of instability. At a recent event hosted by the Center for Strategic and International Studies (CSIS) titled “Federal Statistics for Economic Security,” leading economists identified quite a few. “We have to imagine a world where technology will outdo the best economists,” said Oliver Wise, executive director of Bloomberg Center for Governance and Excellence, to a room full of economists. As geopolitical tensions rise, there is a demand for constant innovation. After all, policymakers and economists alike are operating under the belief that the country with faster technological advancement will dominate global ideology. Their strategy: integrating artificial intelligence in governance and federal data collection systems. A wide-scale modernization effort. But what will inch us toward the modernization we think we require? Acting directors at the nation’s highest statistical burea...

At SEMAFOR’s “Navigating Regulatory Waves: Pathways Toward Policy Innovation” event on October 28, policymakers and industry leaders spoke on how the U.S. can adapt to new economic and technological obstacles in an era of renewed geopolitical rivalry. The common question they answered was How can the U.S. stay innovative and competitive in this fast-changing world? Out of all the conversations that day, the one with Rep. Deborah Ross (D-NC) stood out to me—she spoke with conviction, humor, and a sense of urgency that cut through the usual talking points. Her first message: innovation shouldn’t come with a price tag. Rep. Ross didn’t mince words about President Donald Trump’s idea to impose new fees on patents. She called it a threat to first-time inventors and minority business enterprises (MBEs)—the people who most need access, not more disadvantages. “We need to support first-time patent holders to uphold the values this country was founded on,” she said. She emphasized that we need ...

North America’s triad has always relied on each other for shared prosperity. The US-Mexico-Canada Agreement (USMCA), inaugurated in 2020, was built for mutual growth and stability. But now, President Donald Trump’s tariff approach on goods from nations neighboring the US has inflicted damage on Canada and Mexico. By the same coin, it has opened the door for China to become a dominant trade partner—especially with Mexico.  The upcoming 2026 review is no routine check-up. It’s shaping into a renegotiation that will determine the future of North American cooperation.  The U.S.’ greatest strength has always been its alliances,” said Jean Charest, former premier of Quebec.  Three experts, one from each member country, met at the Brookings Institution to discuss the high stakes of the formal review, scheduled for June or July 2026. This economic partnership underpins one-third of global GDP and supports around 17 million jobs. The implications of the renegotiation reach far pas...

The Federal Reserve cut interest rates for the second consecutive time on Wednesday, lowering the benchmark federal funds rate by 25 basis points to a range of 3.75 %–4.00 % . This move follows September’s initial rate reduction to 4.00 %–4.25 %. Together, the cuts signal growing concern about slowing job growth, weakening consumer confidence, and a still-uneven recovery that has left many Black and minority businesses struggling to access affordable credit. A Softer Economy, Not Yet an Easier One The Fed’s policy statement underscored “elevated uncertainty about the economic outlook.” With unemployment edging higher and inflation “still running hot” ( see our analysis ), policymakers are threading a fine line between supporting growth and maintaining credibility on prices. For Black- and minority-owned firms, this caution matters: many operate in sectors tied closely to consumer spending or local service demand. Our September 2025 Unemployment Forecast already showed that job loss...

At a time when DEI initiatives are under attack, MacKenzie Scott continues to prove that targeted, equity-driven philanthropy can be both bold and transformative. As reported by Black Enterprise ( https://www.blackenterprise.com/mackenzie-scotts-42m-gift-shows-her-tenacity-to-supporting-black-students-despite-anti-dei-efforts/ ) , Scott’s $42 million donation to 10,000 Degrees, a nonprofit helping low-income and minority students attend college, is the largest in the organization’s history. It arrives amid a nationwide rollback of diversity programs—making her gift a powerful counterstatement. Scott’s approach—unrestricted, trust-based giving focused on racial equity—mirrors the Creative Investment Research principles of impact investing. It channels capital in a counter-cyclical manner to places where traditional markets and policies have failed: in this case, toward high social return investing....by expanding educational opportunity for Black and Latino students. In a climate of ret...

On October 22, policymakers, advocates, and healthcare leaders came together for a powerful conversation on one clear message: breast cancer screening saves lives. Despite major advancements in detection and treatment, deep disparities remain, especially for Black and Hispanic women and those with lower incomes. The event centered on the Access to Breast Cancer Diagnosis (ABCD) Act, a bipartisan bill designed to make diagnostic imaging more affordable and accessible for all women. By addressing financial barriers and insurance gaps, the act aims to ensure that no one delays or skips critical follow-up testing simply because of cost. Black women face the highest breast cancer mortality rates of any racial group in the U.S. They are 40% more likely to die from the disease and often receive diagnoses at younger ages and later stages. Similarly, Hispanic women and those with annual incomes below $35,000 are more likely to miss follow-up screenings because of cost barriers. Representative D...

The delayed release of September’s Consumer Price Index (CPI) — now scheduled for Friday,  October 24, 2025 — comes at a crucial moment. With Federal Reserve officials weighing whether to cut the benchmark Federal Funds Rate to ease short-term borrowing costs, this data release will heavily influence the next policy move. Forecast: Inflation Running Hot Our forecast projects that headline CPI rose 3.2% year-over-year in September , slightly above expectations, while Core CPI (excluding food and energy) likely came in at 3.3% . On a month-to-month basis, prices probably increased 0.5% , reflecting continuing upward pressure from goods and housing costs. While energy prices eased modestly, tariff-related price pressures and supply-chain re-shoring costs have kept inflation “sticky.” Durable goods categories such as furniture, appliances, and home fixtures — many of which depend on imported materials — remain notably affected by tariffs . These categories alone may have contri...

New Majority Ventures (NMV) hosted a town hall at Martin Luther King Jr. Memorial Library in downtown D.C. providing a space for minority entrepreneurs and business-owners to learn from seven-figure-earning DMV success stories. NMV provides feedback and technical training for growing companies that can provide marketing prioritization skills and hiring skills. They also announced the launch of their app that leverages their training modules for mobilized use. The most remarkable aspect of hearing directly from these founders was seeing how humble they were about their rising stardom. Not due to the cameras on them, rather, it was clear they learned the importance of trust between workers and executives. Invest in your team. You can’t grow your product if people don’t believe in the purpose you have set out, and therefore you must also convince people you’d like to hire why your company is different from the white noise in a vast pool of apps and other existing user platforms.  Busi...

The partial government shutdown did not impact all businesses equally. As chief economist for the U. S. Black Chamber of Commerce, my research indicates black-owned businesses were hit harder than most. Many are located in states that receive substantial federal aid, such as Maryland and Virginia, and they tend to be in industries such as health care, administration, transportation, professional services and retail that are sensitive to any decline in federal spending. As a result, these companies can experience a double hit. I estimate there are roughly 1.9 million black-owned businesses in the United States, and they generated $131 billion in 2012. That suggests the monetary impact of the shutdown on their businesses to be $10 million per day. We saw the effects. National parks and federally owned museums closed. Tourism, a major industry in the D.C. area, was, as a result, negatively affected. This impact will be felt for some time, since overseas offices that give visas to foreigne...

Contract and payment delays are among the largest setbacks hitting Black and other minority businesses amid the federal government shutdown. by Jeffrey McKinney. October 18, 2025 Black- and other minority-owned businesses are being slammed by the federal government shutdown, severely hindering their operating ability. Started on Oct. 1, the closure is on pace to be one of the longest in U.S. history. A new survey of those firms by the National Minority Supplier Development Council ( NMSDC ) shows they are being negatively impacted by economic weakness stemming from the shutdown. Simultaneously, the stoppage is projected to bring losses of between $400 million and $450 million for minority business enterprises (MBEs), despite when the government reopens, based on a new calculation by Creative Investment Research. That overall estimate includes $150 million in contract and payment delays, $125 million in reduced demand for business goods and services, $75 million in staffing reductions ...