The FOMC reduced the federal funds rate by 25 basis points to 4.5%–4.75%, citing solid GDP growth, easing inflation, and resilient labor markets. Despite progress, core inflation at 2.7% remains elevated, and risks in commercial real estate and household debt warrant monitoring.

Illinois’ strengths in workforce and infrastructure support growth, but sustaining innovation in a competitive global market remains a challenge.

Despite Washington, D.C.’s strong competitive advantages driven by government demand, intellectual capital, and innovation, the city’s reliance on federal contracts presents a challenge in diversifying its economy for long-term sustainability.

Hawaii’s competitive advantages in tourism and sustainability offer long-term potential, but challenges such as high costs, geographic isolation, and dependence on imports hinder its economic resilience.

Texas’ competitive edge faces challenges in workforce development and sustainable energy transitions for long-term success.

Florida’s competitive strengths are robust, but challenges like climate change and economic inequality threaten its long-term prospects.