In explaining how the Federal Reserve helps to promote a strong and stable economy, Darlene Wilczynski, Vice President and Seattle Regional Executive for the Federal Reserve Bank of San Francisco, started her presentation with a story of the devastation wrought by Hurricane Maria on Puerto Rico in September 2017. As Puerto Rico went without power for 11 months during the crisis, the Federal Reserve saw a 700% increase in demand for cash after the storm, as no electricity meant no use of credit or debit cards. In response, the Fed flew cash to Puerto Rico repeatedly over those months in an effort to help ensure financial stability in a time of crisis.

Darlene joined the Federal Reserve after moving to Whidbey Island 30 years ago, where she was stationed with her husband while serving in the U.S. Navy. She was drawn to the Fed based on its public mission and has been there for 21 years. Her husband is now a captain with Alaska Airlines. Darlene was introduced by Seattle 4 Member Craig Dawson, CEO of Retail Lockbox, who highlighted Darlene’s military career, and noted that she was a member of only the 6^th class of women to graduate from the U.S. Naval Academy. Craig serves on the Seattle Branch Board of Directors for the Federal Reserve Bank of San Francisco.

 

Darlene shared the Fed’s approach to achieving balance in its mission of both maximum employment and price stability, through the use of the Federal Funds rate, which currently sits at 2.25 - 2.5%. The Federal Reserve aims for a “Goldilocks economy,” as Darlene described it, which is characterized by a steady, “just right” inflation rate of 2%. Recent inflation data published in March by the U.S. Labor Department showed the current inflation rate at 1.5% for the 12 months ended in February.

 

Being self-funded and with considerable independence by design, the Federal Reserve places an emphasis on community engagement, as Darlene outlined, to understand the perspectives of the regions that each bank serves. The Federal Reserve Bank of San Francisco is the largest – covering nearly 20% of our economy – of any of the 12 regional banks, covering the nine most western states including Alaska and Hawaii, and representing 21% of the U.S. population.

 

A big part of the Federal Reserve’s work is supporting the financial system through the availability of cash. As Darlene described it, when you have money at the bank, and go to the ATM for a withdrawal, you should be able to get quick access to those dollars. There are approximately $1.7 trillion U.S. Dollars in circulation around the world, with Darlene highlighting that cash is still key in an ever-increasing era of electronic payments. She also shared that millennials use cash just as much as prior generations.

 

Moving that cash around is no small task either, as Darlene shared the experience of transferring several tractor-trailer loads full of coin and currency when the Seattle branch cash facility moved its operation to Renton from downtown. The bank needed a larger vault to support its cash operations, and the effort of wheeling cash containers onto the street to be loaded into the large trucks was supported by six agencies for security, and managed by the Secret Service.

 

Darlene concluded with another story, on a local level, as last week marked the fifth anniversary of the Oso landslide. Nearby Darrington, Washington has only one bank, and that bank was without internet after the slide. The Federal Reserve got cash to the bank, and as Darlene described it, “We helped that community start its recovery process.”

 

Early in the meeting, President Cindy called to attention the great news that fellow Seattle 4 Member Trish Bostrom is a recent Pac-12 Hall of Honor Inductee, a great honor. Noting that Trish is considered the greatest women’s tennis player in UW history, Cindy also spoke of Trish’s work as an advocate and fighter for gender equality in sports, prior to the implementation of Title IX, which Trish continues to raise awareness of today. Trish received a standing ovation. More background and video here: https://pac-12.com/article/2019/03/06/2019-pac-12-hall-honor-class-announced#A11.

 

Todd Summerfelt kicked off the meeting with an inspiring message about the beginnings of spring, and that new hope that springs for Mariner’s baseball with opening day this week. Jeff Borek shared an update that we’ve had 78% participation currently in supporting SRSF, and raised $209,575, closing in on the goal of $227,500. President Cindy then introduced Dr. Valerie Nkamgang Bemo, Senior Program Officer at Bill & Melinda Gates Foundation, to provide an update on the devastation wrought by Cyclone Idai in Mozambique. Noting that millions have been affected, and at least 600,000 displaced, Dr. Bemo shared that the Gates Foundation has already donated approximately $1.1 Million in relief funds, and shared a message of: 1) focus on preparedness; 2) helping communities through disaster risk reduction; and 3) thinking sustainability to respond locally in the future.