The Greater Fort Lauderdale Chamber of Commerce hosted the quarterly meeting of the Council of Economic Advisers (CEA) on May 14, 2025. This gathering brought together C-suite executives from 25 leading corporate and business institutions in South Florida, alongside executives from the Miami Branch of the Federal Reserve Bank of Atlanta. The meeting focused on the current economic landscape, with discussions centered around employment, inflation, and sector-specific challenges and opportunities.

The Federal Reserve, as mandated by the U.S. Congress, aims to promote maximum employment and stable prices. These dual objectives guided the discussions at the meeting related to economic policies and decisions discussed during the meeting. The U.S. unemployment rate for April 2025 stood at 4.2%, unchanged from March, indicating a stable labor market. Meanwhile, the inflation rate for the 12 months ending in April 2025 was 2.3%, a slight decrease from the previous month, suggesting a modest easing of price pressures.

A significant portion of the meeting was dedicated to the impact of tariffs on the economy. The CEA noted that while price increases from tariffs are beginning to be felt in the marketplace, they are not yet fully reflected in the inflation data. The uncertainty surrounding tariffs is affecting future projections and business decisions, with particular concern about their potential impact on pricing and inflation.

Stephen Tilbrook, Partner at Akerman LLP and Chair the CEA, remarked, "The current economic environment presents both challenges and opportunities. While we are seeing stability in some sectors, the uncertainty brought about by tariffs and other external factors requires us to remain vigilant and adaptable in our strategies."

The South Florida tourism and hospitality sector has experienced a downturn, a trend that was a focal point of discussion. In contrast, the real estate sector remains stable, though it continues to be influenced by higher interest rates. The banking sector is also stable, with ongoing lending and financing availability, providing a foundation for economic activity in the region.

The information technology sector in South Florida is thriving, showing healthy growth and contributing positively to the local economy. However, the labor market, while stable, faces challenges in retaining employees due to the high cost of living in the area. This issue was highlighted as a significant concern, with the cost-of-living outpacing wage growth, creating pressure on both employers and employees.

Shari Bower, Regional Executive of the Miami Branch of the Federal Reserve Bank of Atlanta, added, "The Fed’s focus remains on fostering a stable economic environment. By closely monitoring inflation and employment trends, the Fed’s aims to support sustainable growth that benefits all sectors of the economy."

In conclusion, the South Florida CEA meeting provided valuable insights into the current economic conditions and the challenges facing South Florida's business community. The discussions highlighted the importance of strategic planning and policy-making in navigating the complexities of the economic

landscape. As the region continues to adapt to changing conditions, the collaboration between business leaders and policymakers remains essential in fostering a resilient and prosperous economy for everyone.

 

Stephen Tilbrook

Partner | Akerman LLP stephen.tilbrook@akerman.com