El Paso navigates new complexities in international economy
On President Lorie Logan’s second visit to El Paso as part of her 360 Listening Tour, she engaged in a topic critically important to the Borderplex region: water. She also heard from community leaders and business owners about opportunities and challenges border communities face as the country navigates the implications of tariffs, nearshoring in Mexico and declining immigration.
The 360 Listening Tour, a recurring series of trips to engage business and community leaders across the Eleventh Federal Reserve District, provides President Logan real-time insight into the state of the regional economy. She takes information about local economic conditions back to Washington as she participates in Federal Open Market Committee monetary policy discussions.
Diverse sources drive El Paso’s plan for meeting future water needs
President Logan, El Paso Branch board Chair Von Washington and other members of the Dallas Fed delegation tour El Paso’s water desalination plant.
El Paso is focused on the future as it tries to address the water needs of the Borderplex region’s 800,000 residents. Geography complicates that task. The region's supply relies on the Rio Grande as well as aquifers fed by water flowing from the Rocky Mountains.
President Logan and other Dallas Fed leaders visited El Paso Water and toured the Kay Bailey Hutchison Desalination Plant, the largest of its kind in the United States. The plant takes in brackish groundwater and turns out up to 27.5 million gallons of fresh water a day. In addition, an on-site research facility at the desalination plant gives students, mostly from universities in the region, hands-on experience developing innovative water-supply solutions.
Wastewater reuse is also a major part of El Paso Water’s strategy to meet the region’s needs. Its wastewater facilities currently produce treated water, known as reclaimed or recycled water, for irrigation and industrial processes. And its new Pure Water Center is expected to begin producing purified water to supplement the region’s potable supply by 2028.Dallas Fed listens to regional leaders, hears community needs
The Federal Reserve last year announced a review of its monetary policy strategy. As part of the review process, many of the 12 Federal Reserve Banks hosted listening sessions to hear from the public about experiences with labor market conditions, inflation and interest rates. President Logan’s El Paso trip provided a perfect opportunity for Dallas Fed leadership to hear perspectives representing primary and secondary schools, higher education, private businesses and community institutions. | Watch a replay.
A Fed Listens event brought together a cross-section of El Paso business and community leaders to share their perspectives on economic issues with Dallas Fed leadership.
The El Paso event was part of an iniative for all of the Federal Reserve Banks to host community lisening events in their districts.
Labor market conditions, inflation and interest rates were the focus topics at the El Paso Fed Listens event.
The Dallas Fed invited El Paso business and community leaders to share their perspectives on the economy at a Fed Listens event.
Border dynamics greatly impact the region
Tariffs, trade, immigration and nearshoring were key topics at a cross-border trade discussion hosted by President Logan and the Dallas Fed’s El Paso branch.
While the wide-ranging discussion brought diverse perspectives from industries including transportation, commercial real estate, logistics, manufacturing, community development and retail, uncertainty emerged as a key theme. Some participants described uncertainty in employment and infrastructure at the local level while others expressed concern about national and international policy and trade. The discussion and other recent events exemplify the Dallas Fed’s efforts to understand the impact of complex border relationships on the entire country.
Mike Schetzel, Dallas Fed senior vice president and chief of staff (left), visits with an attendee at a dinner during Dallas Fed President Lorie Logan's most recent visit to El Paso as part of her 360 Listening Tour of the Eleventh Federal Reserve District.
In El Paso, the team met with Mayor Renard Johnson, a former Dallas Fed El Paso Branch board member.
Dallas Fed Senior Vice President Roberto Coronado (right) was among the contingent that accompanied President Logan on the El Paso visit.
President Logan’s 360 Tour trips create opportunities for Dallas Fed leadership to hear firsthand from business and community leaders across the district. In El Paso, the team met with Mayor Renard Johnson, a former Dallas Fed El Paso Branch board member.
El Paso trade volume continues to rise
El Paso’s economy is highly dependent on international trade. Even as the region grapples with new complexities in the economic environment, El Paso’s imports and exports continue to climb steadily. The three-month moving average of smoothed trade volumes through El Paso grew to $170.4 billion in April, 16.3 percent higher than the start of the year (see chart).
El Paso Branch directors offer regional economic insights
President Logan sat in on an El Paso Branch board meeting during her visit.
Reserve bank branches are overseen by independent boards of directors, and President Logan took the opportunity to engage with El Paso Branch directors during the trip. Directors represent various industries and share their perspectives on the local economy and monetary policy. Their insights are vitally important as President Logan formulates her own policy views and represents the district in Washington.
