Federal Reserve Bank of Kansas City officials see Nebraska as sound, despite economic worries

The Omaha Branch of the Federal Reserve Bank of Kansas City hosted an economic forum at the Gering Civic Center on Wednesday, Aug. 28 to learn about local economic issues from business leaders firsthand.

The two speakers, Jeff Schmid and Nate Kauffman, also provided updates on the state's current economic state and the seven-state region that the Federal Reserve Bank of Kansas City represents. Those states are western Missouri, Nebraska, Kansas, Oklahoma, Wyoming, Colorado and northern New Mexico.

"I've been very grateful to have the opportunity to represent our region's very diverse and vibrant economy and ensure that our voice is heard in some of their policy decisions," Schmid said.

He explained to the estimated 115 people in attendance how the Federal Reserve Bank works and that everything it does is to better serve the communities within the 10th district.

"All the mission-related things with the Fed is on your behalf," Schmid said. "We serve you. The Federal Reserve Banks and the four cities we occupy are there for you."

Kauffman, who works out of the Omaha offices, expanded more on Nebraska-related economy.

"Our responsibility here in Nebraska is to make sure that there's a regional representation that feeds into this broader national dialog," he said.

Kauffman said representatives of the 10th District specifically makes trips to communities in Nebraska holding forums so they can hear from the business leaders and learn about their specific economic issues.

"We try to get out to the Panhandle at least once every other year," he said, "and to other parts of … western Nebraska once a year (like) Valentine."

Kauffman has a small staff that is in charge of keeping the 10th District — including him and even Schmid — in touch with a large number of communities in Nebraska.

He had five main points that he felt were important to mention when discussing Nebraska's economy: inflation (2% over the long term); industry-specific differences (service versus goods-based industry); regional differences (western Nebraska versus eastern Nebraska); socioeconomic differences (low-moderate income); and uncertainties of the future.

"I think that it's fair to suggest that people feel uncertainty, and it affects the way that you generally think about the economy," Kauffman said.

At the end of both Schmid and Kauffman's speaking time, the two fielded questions from the crowd, answering questions related to the economy with the region and Nebraska.

"I think there are still significant concerns and uncertainties about the economy, and people experience those in different ways," Kauffman said after the forum.

One woman from Alliance spoke about older generations being financially stable but the majority of Alliance students being on free-and-reduced lunch. Neither Kauffman nor Schmid had a direct answer for her, but it sparked debate about affordable housing and especially childcare for young families not just in western Nebraska, but across the state.

"If we were to continue the Q-and-A period, I think that we would have heard more about child care and housing and inflation," Kauffman said. "But people are also concerned about broader economic conditions, including things that aren't necessarily in the Fed's purview of national debt…So I think that people get exposure to a lot of information, and it can often be confusing to disentangle what the messages are from all of those pieces of information."

As far as the uncertainties of the future of Nebraska, Kauffman said he isn't as worried for Nebraska.

"Things in Nebraska look like they still are relatively optimistic in the sense that there are job opportunities," he said. "We have a relatively low cost of living, so there's an incentive, maybe for businesses to want to locate here relative to somewhere else."

This trip was actually his fourth or fifth time visiting the Gering-Scottsbluff area, and he made the most of it this time.

"I did something I haven't done for the 12 years that I've been at the Fed," Kauffman said. "I threw my (road) bike in (with my suitcase)."

While in the area, he rode a 22-mile route around Scottsbluff, which included a ride up to the monument.

"It was a lot of fun. I didn't see any rattlesnakes, but they did tell me I had to stay on the road," he said with a laugh.