AROUND THE DISTRICT: GAUGING ECONOMIC CONDITIONS IN NORTHERN CALIFORNIA

The following information was released by the Federal Reserve Bank of San Francisco:

The SF Fed engages with businesses and communities across the region to gather real-time information on local economic conditions. These insights provide important context to quantitative data and analyses that the Federal Reserve uses to guide its monetary policy efforts.

We also work to connect constituents with research, expertise, and networks that strengthen local economies. In this way, regional engagement furthers the SF Fed's mission of advancing the nation's monetary, financial, and payment systems to build a stronger economy for Americans.

The Federal Reserve's system of 12 Reserve Banks, with the SF Fed representing the western states, helps ensure that local and regional perspectives inform Federal Reserve policies, actions, and decision-making.

Here's a snapshot of a recent outreach in Northern California from Stephen DeLay, Regional Executive at the Federal Reserve Bank of San Francisco.

As regional executive, a big part of my role is to engage with business and banking leaders to gather real-time information on local economic conditions. The insights are important as they provide context to quantitative data and analyses that the Federal Reserve uses to guide its monetary policy efforts.

Within the Twelfth District, which represents the nine western states, two territories, and a commonwealth, I'm focused on engaging with leaders in Northern California, Western Nevada and Hawai'i.

In recent weeks, I traveled to Oakland and up and down the I-5 to Sacramento, Merced, and Fresno to get a pulse on economic conditions in the region.

Oakland

I started off in Oakland, where I met with the Executive Director of the Port of Oakland to hear her perspectives on the port's operations and its role in regional economic growth.

July 2025 data shows that the Port of Oakland loads and discharges more than 99% of the containerized goods moving through Northern California. Oakland's cargo volume makes it the ninth busiest container port in the U.S. based on 2023 data.1

The Port Director provided valuable insights into current economic conditions, detailing the impact of tariffs and economic uncertainties on business decision-making. Furthermore, she provided information on consumer demand, as reflected by fluctuations in airline passenger and cargo volumes. The discussion also delved into the dynamics of the local labor force and the persistent challenges within the commercial real estate sector, and Jack London Square, in particular.

Sacramento

Following that, I traveled to West Sacramento with Laura Choi, Executive Vice President of Regional Engagement. We met with the leadership team of Raley's, a prominent regional grocery chain with stores operating across multiple states, including California. The meeting offered valuable information on how management is responding and adapting to the changes in consumer spending trends, operating costs, and labor market dynamics that are shaping the grocery industry.

Laura shared her experience on LinkedIn, writing, "It gave me a deeper appreciation for the opportunities and challenges of operating a regional grocery chain, particularly around issues of scale and growth."

As Laura and I headed south in Sacramento, we visited Siemens Mobility's manufacturing facility. We saw the production of rail cars for global transit systems, including San Francisco's Muni.

We discussed the resilience of the company's supply chains and economic conditions within the manufacturing sector. We also touched on the potential impact of emerging technologies, such as generative AI, on design and testing processes.

The tour of their facilities highlighted the incredibly detailed planning, design and technology behind rail cars and transit systems. I'll never look at a Muni car in the same way again.

Merced

I then traveled to visit with leaders at the University of California, Merced. I learned more about the role it plays in the region's economic development by being a significant employer and a catalyst for innovation.

UC Merced's research initiatives and partnership with local businesses stimulate economic growth, create job opportunities, and contribute to the region's intellectual capital. The university is committed to attracting students from economically disadvantaged backgrounds and helping them complete degrees and graduate into promising careers.

I'm grateful for the connections that I made at the university. This engagement helped me gain deeper understanding of the multifaceted economic impact that UC Merced has on the region.

Fresno

While in Fresno and Merced, I had the opportunity to build relationships with local Chamber of Commerce groups. I presented an overview of what the Federal Reserve System does and how it serves the American people.

The Fresno Chamber and the Merced County Hispanic Chamber of Commerce play crucial roles in advocating for businesses in the region, providing resources, networking opportunities, and support to foster economic growth and development.

I appreciated the opportunity to personalize and demystify the Federal Reserve. I enjoyed addressing their numerous questions, including inquiries about our dual mandate, our two percent inflation goal, and the ways we utilize information from business leaders to inform monetary policy decisions.

At the end of trip, I couldn't help but feel inspired by the dedication of the leaders I encountered. Despite higher levels of uncertainty and ever evolving challenges, they exhibited remarkable levels of optimism, perseverance and commitment to their customers and communities.

These experiences also underscored the critical importance of being present in the communities we serve. Showing up and listening to our constituents and sharing how we strive to serve them is essential to our collective success. These engagements help us foster stronger, more trusting relationships with the communities we serve.

I am excited for opportunities to spend time in our communities to learn about local economies and share about what the Federal Reserve System does and our role at the SF Fed. These regional engagements further the Federal Reserve Bank of San Francisco's mission of advancing the nation's monetary, financial, and payment systems to build a stronger economy for all Americans.