Every Thread Counts: How Community Insights Shape Our Economic View

Sarah Cramer, author of this blog post, speaks with an attendee at a Community Development Advisory Council reception in St. Louis.

What makes a patchwork quilt beautiful? Its vibrant colors and different sized patches that combine to make one large, cozy blanket. The “patchwork quilt” analogy for our economy has always resonated with me. Each patch represents a different part of the economy. No matter how small the patch, if you were to remove it, the quality and vibrancy of the rest of the quilt would be affected.

As a member of the Community Development team at the Federal Reserve Bank of St. Louis, I often think of underserved and low- and moderate-income (LMI) communities as patches on a large quilt. People may tend to overlook those particular patches. However, all patches are sewn together. A loose thread could unravel the entire quilt. The well-being of the whole is determined by the well-being of each individual, no matter how big or small their community … or patch.

Piecing together Insights: Our Community Development Advisory Council

The Community Development team connects and convenes people and organizations and analyzes research to understand the economic experiences of LMI households and communities. One of the ways we do this is through our Eighth District Community Development Advisory Council (CDAC). The current council consists of 16 executive representatives of financial institutions, academic and research institutions, nonprofits and foundations. These members are split into representatives for each of the four zones within our district: St. Louis, Little Rock, Ark., Louisville, Ky., and Memphis, Tenn.

Members of the St. Louis Fed’s Community Development team and Community Development Advisory Council gather Sept. 30, 2025, in Delmar Divine, a mixed-use development for social innovators in St. Louis.

Council members inform our Community Development staff and St. Louis Fed President Alberto Musalem about credit, workforce and community conditions within the low- and moderate-income communities the members represent. Understanding how people experience the economy is crucial for effective policymaking. The information that policymakers such as our Bank president hear can help them make data-informed decisions. For example, President Musalem is interested in what the council has to say because these stories inform his participation in Federal Open Market Committee (FOMC) deliberations.

These qualitative data give Federal Reserve Bank researchers an idea about what may be around the corner for the economy. The Fed analyzes a wide range of quantitative data points. When coupled with insights from community stakeholders, that data can provide a more complete picture of economic conditions and insights into why households are making certain decisions.

Quilted Narratives: Informing Policy with Real Economic Experiences

Our Community Development team meets with our advisory council twice a year. In our most recent CDAC meeting, several key takeaways were highlighted.

The Need for Accessible, Affordable Credit Solutions

The discussion on access to credit emphasized the financial strain faced by LMI families. They often rely on “buy now, pay later” services to manage their finances. One member quoted a client as saying he increasingly had “more month than money.” There is a notable trend of households using credit to cover essential living expenses due to insufficient income. The council emphasized the importance of financial institutions and community development financial institutions collaborating to innovate and provide sustainable financing options.

Samantha Evans (left), Little Rock Zone regional outreach manager for St. Louis Fed Community Development, talks with Miguel Lopez at a Sept. 30, 2025, reception at Delmar Divine. Lopez is a Community Development Advisory Council member.

The Impact of Natural Disasters and Infrastructure Issues

In May 2025, a tornado in St. Louis displaced thousands and exacerbated the city’s housing crisis. This natural disaster has also placed added pressure on food pantry resources within the area. One member pointed out that the community’s food pantry was completely emptied within an hour on two separate occasions in one day.

Shifts in Education and Workforce Trends

Enrollment in a district community college has increased in certain fields, such as in health care and life sciences, while enrollment in fields such as computer science are declining. At one community college event, one CDAC member said, students were asked why their peers who didn’t enroll in college chose not to. The response was that those young people were waiting to see what effect AI had on jobs.

Business owners also are taking a wait-and-see approach. For example, in previous years, a weekly job fair in the St. Louis Fed’s Louisville Branch Zone consistently attracted five or six employers offering a variety of job opportunities in higher-paying sectors, including in manufacturing. However, in April 2025, that employer participation ceased. Despite these difficulties, the service continues to be provided, although the quality of available jobs has shifted from the higher-paying sectors. As one council member put it, “It’s been a really difficult thing to watch employers who were hiring 10-20 [people] a week literally stop because they don’t know what’s next.”

Learning about Challenges and Helpful Efforts

The insights shared by CDAC members during the council’s meetings provide a wealth of information. By listening to voices for underserved and LMI communities, we can gain a deeper understanding of the unique challenges these populations face and highlight efforts that help residents and businesses thrive.

Just as every patch in a quilt contributes to its overall strength and beauty, every community plays a vital role in our economic fabric. The CDAC's insights are invaluable threads that help us stitch a clearer picture of our economy. Learning about the needs of all those represented by each of the patches, especially those that tend to be overlooked, can help us create a strong and more resilient economy for all.