Economic

Martin J. Gruenberg Sworn in as 22nd FDIC Chairman

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WASHINGTON – Martin J. Gruenberg was sworn in today as the 22nd Chairman of the Federal Deposit Insurance Corporation (FDIC). Travis Hill, who will serve as Vice Chairman, and Jonathan McKernan, who will serve as Director, were also sworn in as members of the FDIC’s Board of Directors (the Board).

“I am honored to serve again as Chairman of the FDIC,” said Chairman Gruenberg. “I look forward to working closely with my fellow Board members to carry out the FDIC’s critically important mission of safety and soundness, consumer protection, and financial stability.”

Vice Chairman Hill said, “It is a tremendous honor to have been appointed to serve as an FDIC Board member. I look forward to engaging with my fellow Board members, the FDIC staff, and counterparts at other agencies regarding the many important issues facing the FDIC.”

Director McKernan added, “The FDIC’s mission resonates deeply with me, as the stability and public confidence in the nation’s financial system is critical to a strong and growing American economy. I am eager to work with my colleagues on the Board and the FDIC staff to do my part to fulfill the agency’s vital mission.”

Chairman Gruenberg is the longest serving member of the Board, first joining as Vice Chairman in August of 2005. He previously served as FDIC Chairman from November 2012 to June 2018. Learn more about the Chairmen of the FDIC.

Prior to his appointment, Vice Chairman Hill served as Senior Advisor to the FDIC Chairman and Deputy to the FDIC Chairman for Policy from July 2018 until February 2022, and, prior to that, as Senior Counsel at the Senate Committee on Banking, Housing, and Urban Affairs.

Director McKernan previously served as Senior Counsel at the Federal Housing Finance Agency, on detail as Counsel on the staff of the Senate Committee on Banking, Housing, and Urban Affairs, and as Senior Policy Advisor at the U.S. Treasury Department and to Senator Bob Corker. Prior to his government service, from 2007 to 2017, Director McKernan was an attorney in private practice focused on banking and consumer financial law.

President Biden appointed Chairman Gruenberg for a term of five years as Chairman and a six-year term as a Director on the Board; Vice Chairman Hill for a term of six years; and Director McKernan to serve for an expiring term until May 31, 2024. The Board will now have a full complement of members for the first time since June 4, 2015.

The Board is comprised of five members who are appointed by the President of the United States and confirmed by the Senate. The chairman, vice chairman and inside director are appointed to six-year terms on the Board. The remaining two Board members are the Comptroller of the Currency and the Director of the Consumer Financial Protection Bureau. No more than three members of the Board can be from the same political party.

U.S. Economic Development Administration Issues Statement On Fiscal Year 2023 Appropriation

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WASHINGTON — U.S. Assistant Secretary of Commerce for Economic Development Alejandra Y. Castillo issued the following statement on the Fiscal Year 2023 appropriations for the U.S. Department of Commerce’s Economic Development Administration:

“I am thrilled that President Biden has signed the Consolidated Appropriations Act, 2023 into law, appropriating $1.6 billion* to the U.S. Economic Development Administration (EDA) for Fiscal Year 2023 programming.

“This vital funding enables EDA to significantly expand its targeted and transformational economic development investments that stimulate private funding, create jobs, support our innovators and entrepreneurs, and help those impacted by natural disasters build back stronger.

“Implementation of this funding will strengthen our collective economic and national security, and improve our individual prosperity and wellbeing, enabling the United States to be the global leader in the industries of the future and increasing economic equity among regions across the country.

“EDA will target investments in innovation and competitiveness with a regional and place-based focus, building on the examples set by EDA’s Build to Scale, Build Back Better Regional Challenge, and Good Jobs Challenge programs. Specifically, the law provides:

  • $752.5 million* for grants authorized by Sections 27-30 of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3722, 3722a, 3722b, and 3723), as amended, across four programs:
    • $500 million for Regional Technology and Innovation Hubs (Section 28),
    • $200 million for the Recompete Pilot Program (Section 29),
    • $50 million for the Build to Scale program (Section 27), and
    • $2.5 million for the STEM Apprenticeships Talent Challenge (Section 30);
  • $500 million* for infrastructure and other long-term economic recovery efforts for areas impacted by natural disasters in 2021 and 2022; and
  • $363.5* million to fund EDA’s other Economic Development Assistance (EDAP) programs.

“We are grateful to Congress for continuing to place their confidence in EDA as we work to best serve our grantees and their constituents across the country. We are excited to continue to build on EDA’s proud and impactful legacy of spurring equitable, placed-based economic development. Working closely with an expanded network of stakeholders, we look forward to developing the most beneficial programs and making the targeted and transformational investments that build needed capacity and that enable exponential, long-term growth.

“We are excited that we can develop a plan and launch the Regional Technology and Innovation Hubs and Recompete Pilot programs that were authorized under the CHIPS and Science Act. These new programs will stimulate economic growth in communities that may not have had the opportunity to compete before — including communities of color and rural communities — delivering the impactful, place-based programing needed to widely stoke our innovation economy.

“EDA will continue to lead the federal government—and the nation—by designing and executing innovative and effective economic development programs. We will remain committed to promote innovation, cultivate entrepreneurship, help build a well-qualified workforce, and position our economic development partners to be more resilient, agile, and competitive in the global marketplace.”

*includes funding for administration and oversight

U.S. Secretary of Commerce Gina M. Raimondo Reestablishes the NACIE

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WASHINGTON – Today, U.S. Secretary of Commerce Gina M. Raimondo announced the appointment of 32 leaders and experts to the National Advisory Council on Innovation & Entrepreneurship (NACIE). NACIE will be charged with developing a National Entrepreneurship Strategy that strengthens America’s ability to compete and win as the world’s leading startup nation and as the world’s leading innovator in critical emerging technologies.

“We must invest further in our entrepreneurs and innovators so that America continues to lead the world in discovering and commercializing critical technologies. At the same time, we must better ensure that more communities throughout the country are included in the ecosystems that will generate these critical innovations. The Biden Administration looks forward to tapping the expertise of the new NACIE members to build a better America and further strengthen our competitiveness on the global stage,” said Secretary of Commerce Gina M. Raimondo. “I applaud these individuals – leaders in their respective fields of industry, workforce development, academia, technology and innovation – for their commitment to serve.”

“The new NACIE members are an impressive group of individuals from diverse backgrounds, regions and industries,” said Assistant Secretary of Commerce for Economic Development Alejandra Y. Castillo, who will serve as one of NACIE’s two federal ex-officio co-chairs. “We have plenty of challenges and opportunities to tackle. I’m eager to get to work to ensure our tech and innovation economy prospers equitably for everyone across the nation.”

“The technological, societal and economic challenges that we face as a Nation today require even stronger bridges between discovery, innovation, and commercialization,” said National Science Foundation Director Sethuraman Panchanathan, who will serve as a federal ex-officio co-chair. “I’m excited to work with the NACIE to help advance the highly integrated research and innovation ecosystem, with a particular focus on expanding the geography of innovation by engaging with diverse communities all across the country.”

NACIE is charged with identifying and recommending solutions to drive the innovation economy, including growing a skilled STEM workforce and removing barriers for entrepreneurs ushering innovative technologies into the market. The council also facilitates federal dialogue with the innovation, entrepreneurship, and workforce development communities.

NACIE is a federal advisory committee managed by the U.S. Economic Development Administration’s Office of Innovation and Entrepreneurship. More than 260 nominees were received. Members will serve two-year terms.

The newly appointed NACIE members are:

Non-Voting Federal Ex-Officio Co-Chairs

  • Alejandra Y. Castillo, Assistant Secretary of Commerce for Economic Development, U.S. Department of Commerce, Economic Development Administration
  • Sethuraman Panchanathan, Director, National Science Foundation

Voting Non-Federal Co-Chairs

  • Steve Case, Chairman/CEO, Revolution; Co-Founder, AOL
  • Kristina M. Johnson, President, The Ohio State University

Voting Members

  • Byron G. Auguste, Co-Founder/CEO, Opportunity@Work
  • Patricia Beckmann, Founder/Managing Director, BioStrategy
  • Melissa Bradley, Founder/Managing Partner/General Partner, 1863 Ventures
  • Allie Burns, CEO, Village Capital
  • Christopher Chung, CEO, Economic Development Partnership of North Carolina
  • Sherrese Clarke Soares, Founder/Managing Partner, HarbourView
  • Michael Crow, President, Arizona State University
  • Lisa Feria, Managing Partner/CEO, Stray Dog Capital
  • Annette Finsterbusch, President/CEO, EnPower, Inc.
  • Brit Fitzpatrick, Chief of Staff, Stark
  • Aziz Gilani, General Partner/Managing Director, Mercury Fund
  • Orin Herskowitz, Executive Director, Senior VP of Intellectual Property & Technology Transfer, Columbia Technology Ventures
  • Neil Kane, Director, Curriculum and Capstone Advising, ESTEEM (Engineering, Science, and Technology Entrepreneurship Excellence Master’s) Graduate Program, University of Notre Dame
  • David Kenney, President/Executive Director, VertueLab
  • Wendy Lea, Co-Founder/CEO, Energize Colorado
  • Ian McClure, Associate VP for Research, Innovation & Economic Impact, University of Kentucky
  • Senofer Mendoza, Founder/General Partner, Mendoza Ventures
  • Rachel Meyers, Chief Science Officer, Faze Medicines
  • Nate Mook, CEO, World Central Kitchen
  • Bill Provine, CEO Delaware Innovation Space
  • Ryan Ramkhelawan, Co-Founder/Managing Partner, Lasting Machine Ventures
  • Aimée Rose, Executive Managing Director, Activate Boston
  • Laura Sachar, Co-Founder/Managing Partner, StarVest Partners
  • Peter Scher, Vice Chairman, JPMorgan Chase & Co.
  • Liz Shuler, President, American Federation of Labor and Congress of Industrial Organizations
  • Grace Simrall, Chief of Civic Innovation & Technology, Louisville Metro Government
  • Dug Song, Chief Strategy Officer, Cisco Security
  • Tamara Steffens, Managing Director, Thomson Reuters Venture Fund

American Economy Added 199,000 Jobs in the Month of December 2021

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U.S. Secretary of Labor Marty Walsh issued the following statement on the December 2021 Employment Situation Report:

“Today, the Bureau of Labor Statistics reported that the American economy added 199,000 jobs in the month of December, and the unemployment rate was 3.9 percent, down from 4.2 percent in November. This marks the first time unemployment has been under four percent since the pandemic began, and the largest ever one-year drop in the unemployment rate on record. With strong, steady job growth every month of the Biden-Harris Administration, we added 6.4 million jobs in 2021, reaching 84 percent of the jobs lost at the start of the pandemic recovered, and empowering workers to secure higher wages, especially for low wage workers. 

“In the Department of Labor, we are focused on building an inclusive recovery that lifts up all workers and communities, and that means identifying and addressing persistent inequities as reflected in an increase in Black unemployment in December. We are investing in equity and diversity in job training programs and career services, strengthening health and safety, wage and anti-discrimination protections for the most vulnerable workers, and making sure the President’s Bipartisan Infrastructure Law creates good jobs for every community. We are devoted to empowering all workers morning, noon and night.

“This work is especially important as the Omicron variant of COVID-19 impacts communities across the country this month, including many workers and workplaces. We have the tools to keep people safe, including mask guidance, increased testing capacity, and vaccines that work to prevent severe illness. I urge anyone who is eligible and has not received a vaccine or a booster yet to visit vaccines.gov and find a vaccination site near you. And I urge all employers to provide the flexibility and support necessary to help workers get vaccinated, protect their health, and continue our historic, worker-centered recovery.”

Labor Secretary Walsh reacts to brand new jobs report, Economy added 210,000 jobs in the month of November

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WASHINGTON .D.C., Dec 3rd – U.S. Secretary of Labor Marty Walsh issued the following statement on the November 2021 Employment Situation Report:

“Today, the Bureau of Labor Statistics reported that the American economy added 210,000 jobs in the month of November, and the unemployment rate was 4.2 percent, down from 4.6 percent in October. With more people entering the job market and an unemployment rate approaching pre-pandemic levels three years ahead of projections, the Biden-Harris Administration continues to deliver a historic, worker-centered recovery. We are committed to an inclusive recovery and among the highlights of this report were major reductions in the unemployment rates for Black workers, Hispanic workers, and workers with less than a high school diploma. ”

“The President’s Bipartisan Infrastructure Law will drive more job growth in the months and years ahead, and at the Department of Labor we are focused on making sure those new jobs are good jobs with access for all through proven pathways like Registered Apprenticeship. Moving forward, the President’s Build Back Better plan is the key to both reducing the biggest costs working families face and increasing equity in our labor market by investing in the care needs that keep so many women, especially Black women, from fully participating in our economy. We are committed to supporting all workers and their families morning, noon and night. ”

“As the holiday season begins, to stay safe and keep our economy moving forward I urge everyone to remain vigilant about COVID transmission and committed to getting yourself and your family vaccinated and boosted as soon as you are eligible.”

Gina Raimondo Meeting with Japan’s Minister of Economy, Trade and Industry Hagiuda Koichi

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Today, Secretary of Commerce Gina Raimondo and Japan’s Minister of Economy, Trade and Industry Hagiuda Koichi held an introductory meeting via teleconference.

The Secretary congratulated the Minister on his recent reappointment by the Prime Minister. The Secretary and Minister discussed opportunities to grow the U.S.-Japan commercial relationship. They also discussed collaborative efforts to improve supply chain resilience and cooperation on digital technology. The Secretary also thanked the Minister for his efforts to encourage continued Japanese investment in the United States and for the strong participation from Japanese investors at the SelectUSA Investment Summit.

Manufacturing Continues to be Among Top Five Largest Employment Sectors

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It’s no secret the manufacturing sector has a major impact on the U.S. economy, and every year Manufacturing Week offers an opportunity to recognize this sector’s significant impact on the nation. Manufacturing Week is designed to coincide with Manufacturing Day, which has been held the first Friday in October since 2011.

U.S. Census Bureau’s 10th-anniversary celebration of Manufacturing Week.

Manufacturing Week expands upon the traditional Manufacturing Day launched by the Manufacturing Institute in 2011. The Census Bureau is celebrating the 10th anniversary by providing a worth of rich content & statistics that inform businesses and policymakers.

Gina Raimondo Announces $3 Billion Investment in America’s Communities

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WASHINGTON – Today, U.S. Secretary of Commerce Gina M. Raimondo announced that the Department of Commerce’s Economic Development Administration (EDA) will implement a series of programs, collectively called Investing in America’s Communities, to equitably invest the $3 billion it received from President Biden’s American Rescue Plan Act to help communities across the country build back better. The EDA investment is the largest economic development initiative from the Department of Commerce in decades.

Later today, Secretary Raimondo will address the White House Briefing Room to further lay out the Biden Administration’s vision for how this historic investment will help every community not only rebuild their local economy but also reimagine it for the future.

“President Biden’s American Rescue Plan delivered direct relief to the American people and was the first step to energizing the American economy following the devastating impacts of the coronavirus pandemic,” said Secretary Raimondo. “Now, its medium-term investments will allow communities around the country not only rebuild but reimagine their economy for the future.”

“With an emphasis on equity, EDA’s investments made possible by the American Rescue Plan will directly benefit communities that have been denied full access to economic prosperity and who have been disproportionately impacted by the coronavirus pandemic,” Secretary Raimondo continued. “We will work with local communities across the country on innovative new approaches to ensure that we can increase American competitiveness by strengthening our workforce, businesses, and communities and build back better in regions across the country.”

Investing in America’s Communities, was launched today with six Notices of Funding Opportunity:

  • Build Back Better Regional Challenge ($1 billion)
  • Good Jobs Challenge ($500 million)
  • Economic Adjustment Assistance Challenge ($500 million)
  • Indigenous Communities Challenge ($100 million)
  • Travel, Tourism, and Outdoor Recreation Grants ($750 million)
  • Statewide Planning, Research, and Networks Grants ($90 million)

As part of the six programs, the Department of Commerce and EDA, working with President Biden’s Interagency Working Group on Coal and Power Plant Communities, is making a Coal Communities Commitment, which allocates $300 million in American Rescue Plan funds to coal communities. This investment will ensure that they have the resources to recover from the pandemic and will help create new jobs and opportunities, including through the development or expansion of a new industry sector.

The American Rescue Plan funding empowers EDA to build upon its greatest strength—flexible funding to support community-led economic development—and provide larger, more transformational investments across the nation. Under the American Rescue Plan, EDA will make grants to state and local governmental entities, institutions of higher education, not-for-profit entities, unions, and Tribes. EDA is not authorized to provide grants to individuals or for-profit entities.

America’s Strong Marine Economy Vital to Building Back Better

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America’s marine economy contributed about $397 billion to the nation’s gross domestic product in 2019 and grew faster than the nation’s economy as a whole, according to the most current results of the first official Marine Economy Satellite Account released today by two Department of Commerce agencies.

“America’s strong marine economy is absolutely vital for building back better,” said Secretary of Commerce Gina M. Raimondo. “President Biden sees the immense value and potential of strengthening America’s blue economy, and this administration will continue to take actions to combat the climate crisis, conserve our oceans, and protect our coastal communities.”

“These statistics show how powerful America’s blue economy is as a driver of jobs, innovation and economic growth,” said Ben Friedman, acting NOAA administrator. “This information will assist our nation’s economic recovery by helping policymakers, industry advocates, and organizations track and accelerate investments in target markets.”

For these statistics, experts from NOAA and the Bureau of Economic Analysis (BEA) described 10 sectors representing businesses dependent on the nation’s oceans, coasts and Great Lakes between the years 2014 and 2019. Marine-related gross domestic product grew 4.2% from 2018 to 2019, faster than the 2.2% growth of the total U.S. gross domestic product as measured in inflation-adjusted dollars. Businesses included in the report also generated a total of $665.7 billion in sales and supported 2.4 million jobs in 2019.

The 10 sectors ranked by their sales are:

  • Tourism and recreation, including recreational fishing ($235 billion)
  • National defense and public administration ($180 billion)
  • Offshore minerals ($93 billion)
  • Transportation and warehousing ($64 billion)
  • Commercial Ship and boat building ($31 billion)
  • Living resources, including commercial fishing and aquaculture ($27 billion)
  • Utilities ($12 billion)
  • Research and education ($10.4 billion)
  • Construction ($7.0 billion)
  • Professional and technical services ($6.3 billion)

“These statistics are further proof that our waters are vital for America’s economy,” said Nicole LeBoeuf, acting director of NOAA’s National Ocean Service. “It is nearly impossible to go a single day without eating, wearing, or using items that come from or through our ports and coastal communities.”

Last year, NOAA and BEA released the Ocean Economy Prototype statistics which covered 2014-2018 and were the most comprehensive measurement of the marine economy at the time. This year’s statistics offer improved national estimates for ocean, coastal, and Great Lakes-related economic activity by major sector, accounting for inflation. 

NOAA Predicts Another Active Atlantic Hurricane Season

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NOAA’s Climate Prediction Center is predicting another above-normal Atlantic hurricane season. Forecasters predict a 60% chance of an above-normal season, a 30% chance of a near-normal season, and a 10% chance of a below-normal season. However, experts do not anticipate the historic level of storm activity seen in 2020. 

For 2021, a likely range of 13 to 20 named storms (winds of 39 mph or higher), of which 6 to 10 could become hurricanes (winds of 74 mph or higher), including 3 to 5 major hurricanes (category 3, 4 or 5; with winds of 111 mph or higher) is expected. NOAA provides these ranges with a 70% confidence. The Atlantic hurricane season extends from June 1 through November 30. 

“Now is the time for communities along the coastline as well as inland to get prepared for the dangers that hurricanes can bring,” said Secretary of Commerce Gina Raimondo. “The experts at NOAA are poised to deliver life-saving early warnings and forecasts to communities, which will also help minimize the economic impacts of storms.”

Last month, NOAA updated the statistics used to determine when hurricane seasons are above-, near-, or below-average relative to the latest climate record. Based on this update an average hurricane season produces 14 named storms, of which 7 become hurricanes, including 3 major hurricanes.

El Nino Southern Oscillation (ENSO) conditions are currently in the neutral phase, with the possibility of the return of La Nina later in the hurricane season. “ENSO-neutral and La Nina support the conditions associated with the ongoing high-activity era,” said Matthew Rosencrans, lead seasonal hurricane forecaster at NOAA’s Climate Prediction Center. “Predicted warmer-than-average sea surface temperatures in the tropical Atlantic Ocean and Caribbean Sea, weaker tropical Atlantic trade winds, and an enhanced west African monsoon will likely be factors in this year’s overall activity.” Scientists at NOAA also continue to study how climate change is impacting the strength and frequency of tropical cyclones.  

“Although NOAA scientists don’t expect this season to be as busy as last year, it only takes one storm to devastate a community,” said Ben Friedman, acting NOAA administrator. “The forecasters at the National Hurricane Center are well-prepared with significant upgrades to our computer models, emerging observation techniques, and the expertise to deliver the life-saving forecasts that we all depend on during this, and every, hurricane season.”

In an effort to continuously enhance hurricane forecasting, NOAA made several updates to products and services that will improve hurricane forecasting during the 2021 season.

  • In March, NOAA upgraded the flagship Global Forecast System (GFS) to improve hurricane genesis forecasting and coupled GFS with a wave model extending ocean wave forecasts from 10 days out to 16 days. Additionally, Global Positioning Satellite Radio Occultation (GPS-RO) data are now included in the GFS model, providing an additional source of observations to strengthen overall model performance.
  • Forecasters at the National Hurricane Center are now using an upgraded probabilistic storm surge model — known as P-Surge — which includes improved tropical cyclone wind structure and storm size information that offers better predictability and accuracy. This upgrade extends the lead time of P-Surge forecast guidance from 48 to 60 hours in situations where there is high confidence. 
  • NOAA’s Atlantic Oceanographic and Meteorological Laboratory will deploy its largest array of air and water uncrewed systems to gather data designed to help improve hurricane intensity forecasts and forecast models. New drones will be launched from NOAA Hurricane Hunter aircraft that will fly into the lower part of hurricanes, and in the ocean, saildrones, hurricane gliders, global drifters, and air-deployable technology — called ALAMO floats — will track various parts of the life cycle of tropical storms.

Last year’s record-breaking season serves as a reminder to all residents in coastal regions or areas prone to inland flooding from rainfall to be prepared for the 2021 hurricane season. 

NOAA also issued seasonal hurricane outlooks for the Eastern and Central Pacific basins, and will provide an update to the Atlantic outlook in early August, just prior to the peak of the season.