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Highlighting the dynamic economy of Texas, northern Louisiana and southern New Mexico

Ben Munyan

Banks in the Federal Reserve Eleventh District have adapted to rising interest rates, which have discouraged new borrowing and complicated the transition to higher-earning loan portfolios, while credit remains strong as borrowers continue to make payments amidst economic growth.

Jerry Pacheco, president of the Border Industrial Association in Santa Teresa, New Mexico, discusses his work attracting investment from private and public sources for the Santa Teresa project and its prospects in an environment of rapidly changing rules of trade.

Laila Assanie and Ethan Dixon

While lagging indicators reflect resilient growth for the Texas economy, more recent survey data suggest diminished momentum amid elevated uncertainty about the outlook.

Malcolm Duncan, whose tenure as Waco mayor coincided with the city’s emergence as a destination and area economic hub, discusses how the city has changed and where its future fortunes and challenges lie.

Steve Estes, the Texas A&M AgriLife Extension Service agent for Taylor County, offers his perspective on how ranchers, farmers and city dwellers can collectively work to ensure that the area makes the best decisions regarding precious water resources

Ethan Dixon, Robert Leigh and Pia Orrenius

Funding for water infrastructure improvements has emerged as a priority for the Legislature during its 2025 legislative session. Absent changes to policy, Texans could face significant water shortages during droughts and constraints on future growth and economic development.

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Southwest Economy

Southwest Economy is published by the Federal Reserve Bank of Dallas. The views expressed are those of the authors and should not be attributed to the Federal Reserve Bank of Dallas or the Federal Reserve System.

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