Federal Reserve Banks across the country collect anecdotes from contacts and hone in on concerns for Federal Reserve Beige Book summaries, published eight times each year. Historically, insights about conditions affecting low- and moderate-income communities have come from the perspective of businesses. Several Reserve Banks began including “Community Conditions” and “Community Perspectives” sections in the fall of 2022. These sections provide insight into local changes through direct accounts of nonprofit and community leaders and workforce professionals serving lower-income people. Here are some takeaways from the January 2025 Beige Book, which was prepared at the Federal Reserve Bank of Chicago and is based on information collected on or before January 6, 2025.

Please note that the Beige Book summarizes comments received from contacts outside the Federal Reserve and is not a commentary on the views of Federal Reserve officials.

“High prices of groceries and housing paired with rising debt service payments have stretched budgets for many consumers in the District. Credit counselors in the region have noted that younger community members are increasingly seeking assistance with managing debt. Challenges are more acute in lower-income parts of the District, with some areas of New York City facing unusually high delinquency rates on consumer debt.”
– New York Fed, Federal Reserve 2^nd District, Community Perspectives

“Workers and jobseekers responded to a District survey about their recent labor market experiences. Workers across all education levels indicated that their most important reason for being employed was access to benefits such as health insurance, while their second most important reason was wages. Roughly 20 percent of workers reported having multiple jobs; many of these multiple jobholders were engaged in gig work because of the flexible scheduling. Over the next three months, most employed respondents indicated that they were unlikely to search for jobs, accept a different job, or stop working altogether. Respondents noted challenges in finding jobs that offer benefits and provide wages high enough to cover living expenses.”
– Cleveland Fed, Federal Reserve 4^th District, Community Conditions

“Community, nonprofit, and small business contacts saw little change in economic conditions over the reporting period. Contacts were less likely to mention inflation than in prior periods, and more likely to mention softening in the labor market. State government officials saw mixed growth in tax revenues. Concerns around the lack of supply of affordable housing remained top of mind for community contacts, especially in the District’s smaller markets, with some observing increases in homelessness and “couch-hopping.” While nonprofit contacts reported healthy year-end donations, they also noted significant increases in operating costs, especially for insurance, and persistent high demand for their services. Higher costs led some nonprofits to close, leaving others to fill the gap by increasing efforts to find new sources of funding and support.”
– Chicago Fed, Federal Reserve 7^th District, Community Conditions

“Contacts reported low- and moderate-income (LMI) consumers were struggling with increasing debt burdens. Most contacts said that they were seeing higher credit card utilization, increasing debt-to-income ratios, and delinquencies. Community development financial institutions contacts noted more clients were seeking consolidation loans due to higher debt burdens. Contacts indicated LMI populations continued to struggle with food and housing prices, as the ability to offset prices was limited due to higher earnings pushing households toward a benefits cliff with a potential loss in government benefits. One contact noted workers would need at least a 10 to 15 percent increase in wages to offset lost benefits but were only finding jobs with much smaller increases.”
– Kansas City Fed, Federal Reserve 10^th District, Community Conditions

“Nonprofit service providers reported a sustained high level of demand for social services. This comes at a time of heightened uncertainty regarding future funding from state and federal governments and possible changes in eligibility for social assistance programs. Nonprofits are looking for alternative sources of funding, as a result. An El Paso contact noted that if changes in eligibility require more work hours, the resulting influx of generally low-skilled workers into a saturated labor market will suppress wages. Another contact reported that close to half of the families they serve lost childcare benefits recently because they could not find a job within the required time. In higher education, 2024 community college enrollment exceeded pre-pandemic levels. In addition, many community colleges have surpassed performance expectations, and thus, will receive additional funding in 2025.”
– Dallas Fed, Federal Reserve 11^th District, Community Perspectives

“Demand remained elevated for community support services such as affordable housing, food assistance, and mental health services. Funding for nonprofit organizations from both individual donors and government sources fell. Contacts across the District reported that public and private educational institutions of all levels faced tighter financial conditions due to lower funding inflows and higher labor costs. Generally easing inflation trends lessened strain on small businesses, though challenges persisted with insurance premiums, rents, and financing costs. Small businesses and nonprofit organizations reported that recent integration of software technologies allowed them to expand their outreach efforts and provide more personalized services.”
– San Francisco Fed, Federal Reserve 12^th District, Community Conditions

Visit the January Beige Book report for a full national summary and more information about economic conditions from each Reserve Bank, including labor markets, financial services, real estate, and more.