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Federal Reserve official says he looks to Bakken for insight on economy

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Federal Reserve official says he looks to Bakken for insight on economy


A national banking official said he looks to North Dakota’s oil industry for clues about the health of the region’s economy.

“The Bakken, and North Dakota, is very interesting in giving me insight into what’s happening here and what it means for the broader economy,” Neel Kashkari said Thursday, May 16, while speaking at the Williston Basin Petroleum Conference in Bismarck.

Kashkari is president of the Federal Reserve Bank of Minneapolis, which serves North Dakota, South Dakota, Montana, Minnesota, as well as part of Wisconsin and Michigan. The Federal Reserve Banks are independent financial institutions that manage the U.S. economy.

In ordinary circumstances, when the economy is healthy, unemployment is low and the average rate of inflation is about 2%. However, if one of those factors is thrown out of whack, the Federal Reserve may decide to intervene.

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“If the economy is growing too slowly, we will traditionally cut interest rates to try to give it a boost,” Kashkari said. “If the economy is overheating and inflation is too high, like recent experience, we will raise interest rates to try to tap the brakes in the economy to bring inflation back down.”

The Federal Reserve conducts extensive research to help inform those decisions, he said — including looking at employment trends in the Bakken.

“There have been times when the labor market here is incredibly tight, and it’s not been so tight around the U.S. economy, and you’re drawing in workers from all over America to come here — creating opportunity, high wages, and also challenges here in the local economy,” Kashkari said of North Dakota.

Neel Kashkari, president and CEO of the Minneapolis Federal Reserve Bank, speaks to event attendees during the Williston Basin Petroleum Conference at the Bismarck Event Center on May 15, 2024.

Michael Achterling / North Dakota Monitor

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Recently, that hasn’t been the case, though. The whole country has had more jobs available than workers to fill them.

“If you have a particularly hot sector, you can’t simply draw workers from the rest of the country, because everyone around the rest of the country also has tight labor markets,” he said.

According to Kashkari, tribal economies are another important part of the Minneapolis Federal Reserve’s research. That’s because even when the U.S. economy is strong, tribes often face barriers that prevent them from accessing that wealth.

Their hope is to identify policies that governments can use to break down those barriers.

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“Tribal economies have a unique set of challenges,” Kashkari said. “The economy may do well, different businesses may do well, and we still have people who are not participating in our economy.”

So where is the U.S. economy right now?

A mix of factors — including COVID-19, supply chain issues, an increased demand for consumer goods and Russia’s invasion of Ukraine — caused global inflation to surge in 2021, 2022 and 2023.

These days, however, the economy is doing pretty well, Kashkari said.

Nationwide unemployment is relatively low — it was under 4% as of the end of April, according to the U.S. Bureau of Labor Statistics. And while inflation is still rising more quickly than ideal at around 3.5%, it’s a far cry from its peak of 9% in late 2022.

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Consumer spending is also strong.

“As much gloom as there appears to be when people are surveyed about how they feel about the economy, most people are spending like they feel pretty good about the economy,” he said. “If you go on airplanes, they’re usually full. If you go to restaurants, they’re usually full. If you go to a hotel, they’re usually busy.”

The housing market has been unexpectedly resilient, too, he said. It’s remained competitive even after a series of mortgage hikes by the Federal Reserve in 2022 and 2023.

The average rate for a 30-year fixed mortgage hovered around 3% before 2022, but is about 7.5% today.

“We think that there’s a pent-up demand for housing,” Kashkari said. “There’s been a pent-up shortage of housing across our economy for the last decade.”

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The conference, which has more than 2,200 attendees, continues through Thursday.

This story was originally published on NorthDakotaMonitor.com

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This story was written by one of our partner news agencies. Forum Communications Company uses content from agencies such as Reuters, Kaiser Health News, Tribune News Service and others to provide a wider range of news to our readers. Learn more about the news services FCC uses here.

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Wheeler-Thomas scores 21 as North Dakota State knocks off Cal State Bakersfield 80-69

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Wheeler-Thomas scores 21 as North Dakota State knocks off Cal State Bakersfield 80-69


BAKERSFIELD, Calif. (AP) — Damari Wheeler-Thomas’ 21 points helped North Dakota State defeat Cal State Bakersfield 80-69 on Thursday.

Wheeler-Thomas had three steals for the Bison (8-3). Markhi Strickland scored 15 points while shooting 6 of 11 from the field and 3 for 6 from the free-throw line and grabbed five rebounds. Andy Stefonowicz went 4 of 7 from the field (3 for 4 from 3-point range) to finish with 13 points.

Ron Jessamy led the way for the Roadrunners (4-7) with 18 points, six rebounds, two steals and four blocks. CJ Hardy added 13 points. Jaden Alexander also recorded eight points and two steals.

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The Associated Press created this story using technology provided by Data Skrive and data from Sportradar.



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Scientists discover ancient river-dwelling mosasaur in North Dakota

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Scientists discover ancient river-dwelling mosasaur in North Dakota


Some 66 million years ago, a city bus-sized terrifying predator prowled a prehistoric river in what is now North Dakota. 

This finding is based on the analysis of a single mosasaur tooth conducted by an international team of researchers from the United States, Sweden, and the Netherlands. 

The tooth came from a prognathodontine mosasaur — a reptile reaching up to 11 meters long. This makes it an apex predator on par with the largest killer whales.

It shows that massive mosasaurs successfully adapted to life in rivers right up until their extinction.

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The mosasaur tooth was found in 2022 in the Bismarck Area, North Dakota. Credit: Melanie During 

Isotope analysis

Dating from 98 to 66 million years ago, abundant mosasaur fossils have been uncovered in marine deposits across North America, Europe, and Africa.

However, these marine reptile fossils have been rarely found in North Dakota before. 

In this new study, the large mosasaur tooth was unearthed in a fluvial deposit (river sediment) in North Dakota. 

Its neighbors in the dirt were just as compelling: a tooth from a Tyrannosaurus rex and a crocodylian jawbone. Interestingly, all these fossilized remains came from a similar age, around 66 million years old. 

This unusual gathering — sea monster, land dinosaur, and river croc — raised an intriguing question: If the mosasaur was a sea creature, how did its remains end up in an inland river?

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The answer lay in the chemistry of the tooth enamel. Using advanced isotope analysis at the Vrije Universiteit in Amsterdam, the team compared the chemical composition of the mosasaur tooth with its neighbors.

The key was the ratio of oxygen isotopes. 

The mosasaur teeth contained a higher proportion of the lighter oxygen isotope than is typical for mosasaurs living in saltwater. This specific isotopic signature, along with the strontium isotope ratio, strongly suggests that the mosasaur lived in a freshwater habitat.

Analysis also revealed that the mosasaur did not dive as deep as many of its marine relatives and may have fed on unusual prey, such as drowned dinosaurs. 

The isotope signatures indicated that this mosasaur had inhabited this freshwater riverine environment. When we looked at two additional mosasaur teeth found nearby, slightly older sites in North Dakota, we saw similar freshwater signatures. These analyses show that mosasaurs lived in riverine environments in the final million years before going extinct,” explained Melanie During, the study author.

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Transformation of the Seaway

The adaptation occurred during the final million years of the Cretaceous period.

It is hypothesized that the mosasaurs were adapting to an enormous environmental shift in the Western Interior Seaway, the vast inland sea that once divided North America.

Increased freshwater influx gradually transformed the ancient sea from saltwater to brackish water, and finally to mostly freshwater, similar to the modern Gulf of Bothnia. 

The researchers hypothesize that this change led to the formation of a halocline: a structure where a lighter layer of freshwater rested atop heavier saltwater. The findings of the isotope analyses directly support this theory.

The analyzed mosasaur teeth belong to individuals who successfully adapted to the shifting environments. 

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This transition from marine to freshwater habitats (reverse adaptation) is considered less complex than the opposite shift and is not unique among large predators. 

Modern parallels include river dolphins, which evolved from marine ancestors but now thrive in freshwater, and the estuarine crocodile, which moves freely between freshwater rivers and the open sea for hunting.

Findings were published in the journal BMC Zoology on December 11.



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North Dakota highway rollover crash caught on camera

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North Dakota highway rollover crash caught on camera


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