This Week in ESG and Impact Investing

The U.S. economy was considerably stronger in the second quarter of 2026 than previously reported. The Bureau of Economic Analysis reported on 9/30/26 that real GDP increased at a 2.2% annual rate during the second quarter , a significant upward revision from the previous estimate of 1.5%. First-quarter growth was also revised higher, from 2.1% to 2.5% as part of BEA's annual update. On the surface, this is good news. But as we have repeatedly noted, the headline GDP number does not necessarily describe the economy experienced by Black-owned businesses, minority-owned firms, small businesses, or the communities in which many of these companies operate. The underlying numbers tell a more complicated story. The Economy Was Stronger Than We Thought The 0.7 percentage-point upward revision to second-quarter GDP primarily reflected stronger estimates for business investment, consumer spending and government spending. Even more significant, real final sales to private domestic purchaser...

On September 15, I attended Semafor's Future of Health Forum at Gallup, which brought together leaders from healthcare, business and policy to discuss how innovation can make healthcare more accessible, affordable and transparent. Two senators, two very different approaches What I found especially interesting was how differently the two senators approached the same topic. While Sen. Andy Kim focused on expanding access to care, Sen. Bill Cassidy framed the issue mainly around costs and transparency. Sen. Andy Kim (D-N.J.) spoke first. He presented his MediKids proposal, which would guarantee health coverage for every American under 26. The bill would automatically enroll children in Medicaid's early screening and preventive care programs at birth. Kim's argument is simple: healthier kids become healthier adults, so investing early pays off later. He insisted that the bill is not just a messaging exercise but something meant to pass, and he sees it as part of a larger Democr...

The Federal Reserve raised interest rates by 25 basis points on September 16, increasing the federal funds target range from 3.50%–3.75% to 3.75%–4.00% . The vote was unanimous.  For Black and minority-owned businesses the consequences deserve closer examination. Following the Fed announcement, major U.S. banks increased their prime lending rate from 6.75% to 7.00% . Prime is particularly important to small businesses because many commercial lines of credit, working-capital facilities and SBA loans are either directly or indirectly tied to it. The result is straightforward: the cost of business capital just went up. Estimated Black/Minority Business Borrowing Costs Before and After the Hike The table below illustrates the immediate effect on small-business borrowing. These are not race-specific quoted rates—but lenders are known to have a separate unpublished “Black business rate.” The table below illustrates rates using common prime-linked financing products. For a minority-owned ...

Reflections from Georgetown's “Magnifica Humanitas” Panel, by Julia Johanna von Rüden.  On September 9, I attended "AI, Catholic Social Teaching, and Pope Leo's Invitation to Dialogue with the World" at Georgetown University, a conversation that impacted my own ethical perspective on AI more than I had expected . The event, convened by Georgetown's new president, Eduardo Peñalver, was moderated by Kim Daniels, director of the university's Initiative on Catholic Social Thought and Public Life. The panel brought together Archbishop Gabriele Caccia (Apostolic Nuncio to the United States), Vilas Dhar (Patrick J. McGovern Foundation), Molly Kinder (Breakwater Initiative), Anna Rowlands (Durham University), and Jasmine Sun (The Atlantic).  The anchor for the discussion was Pope Leo XIV's recent encyclical, Magnifica Humanitas ("Magnificent Humanity"), which calls on institutions, especially universities, to help ensure that AI serves the common good ra...

The August 2026 Consumer Price Index (CPI) provides another reason to be cautious about declaring victory over inflation. The CPI increased 0.4 percent in August , four times July's 0.1 percent increase. Annual inflation remained at 3.4 percent , while core CPI increased 0.3 percent for the month. The relatively stable annual headline masks a critical development: inflation accelerated during August. Energy Is Again the Warning Sign Energy prices increased 2.1 percent in August, while gasoline jumped 3.9 percent . Gasoline alone accounted for more than one-third of the monthly CPI increase. Gasoline prices are now 27.4 percent higher than a year ago , according to US Department of Labor Bureau of Labor Statistics (BLS). This matters for transportation, logistics, construction, food distribution, delivery and other businesses with significant fuel exposure. For these firms, a 3.4 percent national inflation rate bears little resemblance to their actual increase in operating costs. M...

The August 2026 Producer Price Index sent a warning to Black and minority-owned businesses: business inflation is accelerating again. The U.S. Bureau of Labor Statistics reported that producer prices increased 0.4 percent in August and 5.4 percent over the past year . Final-demand goods prices jumped 1.1 percent , while energy prices increased 4.2 percent . One number is particularly concerning: diesel fuel prices surged 24.1 percent in August. Transportation and warehousing prices increased 2.3 percent, while truck freight transportation rose 2.0 percent. These increases directly affect minority-owned trucking, construction, delivery, distribution and logistics firms. The Inflation Pipeline Remains Hot Another warning: prices for processed goods for intermediate demand increased 1.8 percent in August and 11.5 percent over the past year . These are costs moving through the production pipeline. This implies that businesses will continue facing higher supplier prices even if some headl...

The August 2026 Employment Situation report looks stronger than recent months, but we believe the headline payroll number should be treated cautiously. The Bureau of Labor Statistics reported that nonfarm payroll employment increased by 162,000 jobs in August , while the unemployment rate remained at 4.1 percent . That is a significant improvement over the recent trend, but we are not convinced the number fully reflects underlying labor-market conditions. One reason is concentration. About 101,000 of the 162,000 reported jobs—roughly 62 percent—came from just two categories: food services and drinking places and local government education . BLS also noted that the education increase largely offset a decline in the prior month, suggesting that timing and seasonal adjustment may be influencing the headline figure. Much of the rest of the economy showed limited hiring. Employment changed little in wholesale trade, retail trade, transportation and warehousing, financial activities, profess...