The community development function arose from the Federal Reserve's responsibilities as a bank supervisor and regulator. As part of regulating and supervising banks, the Fed helps ensure they comply with fair lending laws and the Community Reinvestment Act (CRA).

Under the CRA, banks are required to meet the credit needs of residents and businesses in the communities where they operate, including low- and moderate- income (LMI) and underserved rural areas. To support these efforts, community development staff conduct research and outreach to understand economic, financial, and community conditions.

The insights we gain about the economic and financial conditions of LMI people and places also help to inform Fed leaders on monetary policy decisions that support a strong economy. The Federal Reserve has a mandate from Congress to promote maximum employment and stable prices. To meet these policy goals, we must understand how people from all walks of life experience the economy and how policy decisions affect their experiences.

Each Reserve Bank tailors its community development activities to respond to the economic needs of the region it serves. Our community development staff is comprised of researchers and other specialists who work on a wide variety of issues. Examples include workforce development, housing, access to financial services, small business development and economic development in urban, suburban, and rural communities.