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Investing.com -- Federal Reserve Governor Michael S. Barr emphasized the importance of economic data and research in addressing persistent economic challenges in Native American communities during a speech at the Center for Indian Country Development’s tenth anniversary summit in Minneapolis.
Speaking Wednesday, Barr noted significant economic disparities affecting Native Americans, including lower household incomes, higher poverty rates on reservations, and greater unemployment compared to the overall population. According to the Federal Reserve’s Survey of Household Economics and Decisionmaking, Native American households consistently report being less likely to have cash available for a $400 emergency expense.
"Native-owned small businesses were less likely to receive the financing they applied for, even though they were much more likely to apply for small amounts of credit," Barr said, highlighting financial access challenges. He also pointed to a lack of financial institutions near reservations, which restricts capital and credit availability.
Barr, who serves as oversight governor for the Fed’s Division of Consumer and Community Affairs, stressed that addressing these challenges requires coordination with local leaders. He referenced his work at the Treasury Department in the 1990s, where he co-chaired a working group focused on reducing barriers to mortgage lending in Indian Country.
The governor praised tribal governments for diversifying revenue streams and using economic data to make evidence-based decisions. He also acknowledged the role of Native Community Development Financial Institutions in addressing credit gaps through culturally informed lending practices.
Barr emphasized that Indian Country’s economic health is intertwined with the broader economy, noting examples such as tribal casinos attracting visitors to surrounding businesses and Native enterprises subcontracting with non-Native-owned businesses.
"The Federal Reserve promotes a healthy economy and a stable financial system for everyone, and that simply cannot be done without supporting strong and sustainable communities in Indian Country," Barr said.
He concluded by expressing admiration for tribal leaders’ long-range vision and their ability to meet community needs through innovative approaches despite economic challenges.
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