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.
Michael Achterling / North Dakota Monitor
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
Armstrong applauds federal funding for upgrading coal infrastructure, including Antelope Valley Station
BISMARCK, N.D. – Gov. Kelly Armstrong today applauded President Donald Trump’s announcement of his plan to address the nation’s energy emergency with funding under the Defense Production Act, including up to $425 million for the U.S. Department of Energy for 12 projects selected to expand and reinvigorate America’s coal fleet and up to $75 million for a coal export facility.
The funding includes over $27.4 million to help pay for a $70 million proposed project to modernize two coal-fired units at North Dakota’s Antelope Valley Station, operated by Basin Electric Power Cooperative near Beulah in Mercer County. According to the DOE, the upgrades will mitigate unplanned outages, improve efficiency and increase generation capacity. The project is designed to ensure continued affordable and reliable electricity while also supporting local employment at Antelope Valley Station and Freedom Mine, the DOE said.
“North Dakota enjoys the lowest electricity rates in the nation, and investments like this will ensure our fleet of coal plants can produce clean, reliable and affordable power for decades to come,” Armstrong said. “We appreciate the continued support by President Trump and his administration for policies that support U.S. energy dominance and a more stable electric grid to serve our citizens, grow our economy and strengthen our national security. Coal country, and our entire state, will emerge even stronger from this action today.”
Prison Life in North Dakota
Every time we cross the Expressway overpass in Bismarck, you get a quick glimpse into prison life in North Dakota. Occasionally, you will see inmates in the yard doing various forms of outdoor recreation. The barbed wire that surrounds the North Dakota State Penitentiary is a sobering reminder that this is not where any sane person would ever want to spend any part of their life.
I met one of our listeners recently who works at the State Pen in Bismarck, and I got a chance to ask her some questions I’ve always wondered, mostly what life is like behind bars. “Is it like prison life in the movies?” She didn’t have a bright picture to paint, and that’s probably the way it should be, to help steer individuals away from a life of crime.
Oskari-Kauko Värä
I was surprised to find out that at least some of the inmates have tablets and are allowed to go online; their online experience is very controlled. I was also told prisoners are allowed to listen to the radio, something I already knew, as I have received calls from convicts making requests before. You kind of feel the pressure behind those requests, “play it or else”. Ha!
I plan to request a tour in the future using my media credentials and give you more insight into what it’s like behind bars at the North Dakota State Penitentiary.
Marina Nezhinkay
The 20 Worst Prisions in America
Did the North Dakota State Pen make the list? Nope. According to MoneyInc, these are the worst prisons that even the most hardened criminal would want to avoid.
20. Ely State Prison – Ely, Nevada
19. Folson State Prison – Folson, California
18. Penitentiary of New Mexico – Santa Fe, New Mexico
17. William C. Holman Correctional Facility – Atmore, Alabama
16. Sing Sing Correctional Facility – Ossining, New York
15. San Quentin State Prison – San Rafael, California
14. Louisiana State Pen – Angola, Louisiana
13. Rikers Island – New York, New York
12. Reeves County Detention Complex – Pecos, Texas
11. Julia Tutwiler Prison – Wetumpka, Alabama
10. Pelican Bay State Prison – Crescent City, California
9. United States Pen Marrion – Marion, Illinois
8. Idaho Correctional Center – Kuna, Idaho
7. United States Penitentiary Tucson – Tucson, Arizona
6. Leavenworth Federal Penitentiary – Leavenworth, Kansas
5. Orleans Parish Prison – New Orleans, Louisiana
4. Men’s Central Jail & Twin Towers Correctional Facility – Los Angeles, California
3. Tent City Jail – Phoenix, Arizona
2. Allan B. Polungky Unit – Livingtonston, Texas
1. US Penitentiary Administrative Maximum – Florence, Colorado
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Gallery Credit: Stacker
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