Michael S Barr: Rural communities - worth the investment

It is great to be here with you today. During my career, I've had the opportunity to work on issues affecting rural communities, especially access to capital. My time at the Federal Reserve has only deepened my appreciation for the opportunities and challenges of rural America, as I've traveled over the past several years to rural communities.

These communities share many challenges, and they also face distinct obstacles that require flexible solutions. What has stood out to me is the level of innovation and creativity behind many of those solutions. We should do more to elevate these examples, sharing what works and spreading ideas that can expand opportunity and support economic growth across rural America.

For example, in 2023, I had the opportunity to travel the Blues Trail in the Mississippi Delta, from Jackson to Memphis. Along the way, I met with local leaders and financial institutions, some of whom are represented here today, to learn how once-thriving rural railroad towns are adapting to both long-standing and emerging challenges.

In Moorhead, Mississippi, "where the Southern crosses the Yellow Dog," I saw how a bank that had struggled to maintain a branch chose to donate its building to a community development financial institution (CDFI), preserving access to banking services for a community that needed it.

In Clarksdale, Mississippi, I visited the Travelers Hotel, which was redeveloped using New Markets Tax Credits and is now contributing to the resurgence of the Blues tourism industry in that historic community.