North Dakota
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.
“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.
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.
“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.
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.”
The conference, which has more than 2,200 attendees, continues through Thursday.
This story was originally published on NorthDakotaMonitor.com
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North Dakota
North Dakota Horse Park gets finances on track as 2025 season takes shape
FARGO — Slowly, the North Dakota Horse Park in Fargo is growing its live horse racing meet and for the first time in nearly a decade, the organization that runs the track is not scrambling to make the tax payment that once loomed over it.
The Fargo track is operated by Horse Race North Dakota, a nonprofit organization that contributed when the track was built in 2003.
At a meeting of Horse Race North Dakota on Friday, Dec. 20. Cindy Slaughter, accountant and co-owner of TaxLady, which contracts with Horse Race North Dakota, said the track’s overall income is up about $93,000 from this time last year.
A fourth weekend of racing cost the track about $148,000 this year. However, that cost can be offset in the future by factors such as attendance and the amount bet on the races.
“There’s a couple of things we could do differently this year to reduce that amount,” North Dakota Horse Park General Manager Hugh Alan Drexler said.
While Drexler and HRND will look to decrease costs, they will not try to do that at the expense of the horsemen, as they hope to keep purses for each race flat or increase them in 2025.
“I don’t want to cut the purses at all, that would be the last thing we would cut,” HRND President Jay Aslop said.
“That is what our goal is, to promote racing and to increase race dates,” Drexler said. “The day the finances don’t look the same, that is when we need to make a change.”
Live racing receives additional funds from the North Dakota Racing Commission. The commission will meet in February to determine the amount of funds that will be granted to the Fargo track as well as Chippewa Downs, the second horse racing track in North Dakota near Belcourt.
Overcoming financial struggles
Heavy special assessments loomed over the North Dakota Horse Park for several years after it opened.
In 2003, the city of Fargo spent $1.5 million to extend sewer, water and other infrastructure to the track. The city planned to recoup the costs with special assessments, a kind of property tax assessed to benefiting properties, but the city agreed to suspend the assessments for five years in hopes that the race track would stimulate the development of commercial and residential properties. This would spread the assessments over more property owners and create a smaller bill for the track, which in 2015 was about $1.9 million.
The track is now in repayment of its taxes, making annual payments to the city of Fargo, and accountants are confident a fourth weekend of racing in 2025 will not adversely affect the track.
“I don’t have any concerns about running a fourth weekend this year,” Slaughter said.
Horse racing will be held at the Fargo track in 2025 over four weekends, likely July 12 through Aug. 3, track officials said.
“(It will be) some combination of either Friday, Saturday or Saturday, Sunday depending on what other events are going on in the area,” said Drexler.
In 2024, attendance at the Fargo track was up overall with about 8,358 in attendance over the eight race days, up from about 8,127, in 2023.
The Fargo track held horse races on Saturday and Sunday afternoons for four consecutive weekends, starting Saturday, July 13. The weekend of July 27-28, races were held in the evening so as to not compete with the Fargo AirSho. The horse park competed for attendance each weekend as the Fargo Street Fair, Red River Valley Fair and the Renaissance Fair overlapped the schedule. The horse park’s closing weekend coincided with WeFest.
The track hosted only three weekends of racing in 2022 and 2023, as it was constricted to operating expenses and the amount of money granted for a live season by the North Dakota Racing Commission. The Fargo track hosted a four-week meet in 2021 but held only two weekends in 2020.
North Dakota
Sports Spotlight: Ben DeForest
BISMARCK, N.D. (KFYR) – Bismarck High Wrestlers win a lot of titles.
“We’re striving for a state championship, that’s where the bar is set,” said Bismarck High Wrestling head coach Mark Lardy.
Three of said titles belong to the top-ranked 133-pound wrestler in North Dakota, Ben DeForest.
Now, Ben’s going for number four.
“It would mean everything to me,” said Ben DeForest. “There have been some great wrestlers from BHS that have been four-timers it would just mean a lot for me to add my name to that list.”
”He led a lot by example in the past,” said Lardy. “Now he leads not only by example but his voice in the room is heard.“
Even when his BHS days are over, Ben has another chapter to write in his story: He’s committed to Wrestle at UMary.
“We pride ourselves on trying to keep and retain as many local North Dakota kids here at U-Mary and we’re just very thankful that Ben chose to come here and wrestle for us as well,” said U-Mary Wrestling head coach Adam Aho.
The state champ has a bigger goal in mind.
“His goal is way beyond what our room is going to give him. This is just a stepping stone,” said Lardy.
Ben wants a national championship.
“We need every guy to have that type of mentality,” said Aho. “Without it, we will never be relevant on the national scene.”
”Once you get your hand raised you realize, all those morning practices you didn’t want to go to and all those lifts that you were like, uh I don’t know, it’s worth it. It’s worth it,” said DeForest.
Copyright 2024 KFYR. All rights reserved.
North Dakota
My Heartfelt Christmas Wish To You North Dakota
My Heartfelt Christmas Wish To You North Dakota.
Not a “catchy-clicky” title and I doubt many of my listeners or readers will probably even read this article.
However, I wanted to share something with you that is on my heart. This is so not me, as I’m more the guy who writes about “North Dakota’s 10 most quirky this and that”.
It’s not that I’m not a sensitive guy, because when I was growing up, I was probably too sensitive. I would avoid sad movies, songs, or anything that would spark too much of an emotion.
Yes, you could say my heart has become a bit jaded and cold over the years. It’s not something I’m proud of but more of a defense mechanism.
2024 has probably been one of the most challenging years for my family.
From losing loved ones to family issues to health issues to very challenging financial times, it’s been one of those years where you just can’t catch a break. I’m sure many of you can relate.
As we were attending a Christmas Eve candlelight service last night a young child caught my eye.
She was a cute little toddler who was starting to act up. Something I remember oh so well at church with my little now 20-year-old son.
As her father took her outside the sanctuary to attend to her, I couldn’t help but notice this child’s extremely unfair situation. She had a disability at a year or so old, that none of us could ever imagine. It broke my heart.
This poor child and her family no doubt have a long road ahead of them. As we lit our candles later in the service, I caught the wonder in her eyes, and it couldn’t help but melt my cold heart at the time.
She was perfect and I found myself saying a prayer for this little blonde girl with curly locks and her family.
Her situation also reminded me that I should be thankful for what I have and not what I don’t this Christmas. This is my Christmas wish for you North Dakota, that you will realize the same thing.
Be thankful for who you have around the tree today, not what’s under it.
Merry Christmas to all my listeners and readers. I hope at least a few of you get to read this and it will touch you the same way this little girl touched me on Christmas Eve.
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