On March 25, 2025, Federal Reserve Governor Adriana D. Kugler addressed the U.S. Hispanic Chamber of Commerce Legislative Summit in Washington, D.C. In her speech, she highlighted the entrepreneurial spirit of Latinos, their critical contributions to the U.S. economy, and her economic outlook for 2025.
As the first Latina policymaker in Federal Reserve history, Governor Kugler underscored the resilience, innovation, and economic impact of Hispanic entrepreneurs. Here’s what she had to say about Latino business owners, labor market trends, and the future of the U.S. economy.
The Entrepreneurial Spirit of Latinos
Latinos are one of the fastest-growing entrepreneurial groups in the U.S., driving innovation, job creation, and economic expansion.
Key Facts on Latino Entrepreneurship
- 5 million Latino-owned businesses employ millions across the country.
- Latino businesses grew 57% between 2007 and 2022, outpacing the national average.
- Latino entrepreneurship hit a record high in 2023, with new business formation rates double the national average.
This rapid growth isn’t just about numbers—it’s reshaping industries. According to Stanford University research, Latino entrepreneurs lead the way in adopting artificial intelligence (AI) technology, giving them a competitive edge in the digital economy.
Governor Kugler’s Personal Connection
Drawing from her own background, Kugler shared stories of her entrepreneurial family—from her grandfather’s dairy farm to her grandparents’ electronics shop. She emphasized how Latino entrepreneurs, much like her family, embrace hard work, innovation, and perseverance to overcome challenges.
“Entrepreneurs improve the way of doing business and generate new jobs and wealth. They create new processes, products, and services that improve lives.” – Governor Adriana D. Kugler
Latinos: A Driving Force in the U.S. Economy
Beyond entrepreneurship, Latinos play a crucial role as workers, consumers, and investors. Their growing economic influence is evident in job creation, workforce participation, and wage growth.
Latinos in the Workforce
- 34 million Latinos are part of the U.S. labor force.
- Latino workforce growth since 2020: 14% (compared to 4% overall).
- Labor force participation: 66.9% for Latinos vs. 62.4% national average.
Latino workers fuel key industries, making up a large share of:
- 35% of construction workers – essential to the housing boom.
- Over one-third of warehouse workers – powering the e-commerce sector.
- One-fourth of couriers – supporting last-mile delivery logistics.
- Significant portions of childcare, automotive, and maintenance workers.
With 1 million Latinos turning 18 each year for the next two decades, their role in the economy is only expected to grow.
“The Latino population is young, highly engaged in the workforce, and increasingly educated—factors that will continue to drive economic strength in the coming years.” – Governor Adriana D. Kugler
The Economic Outlook: Growth, Inflation, and the Federal Reserve’s Policy Approach
Governor Kugler’s speech also provided insights into the U.S. economy’s current state and future trajectory.
1. Solid Economic Growth, But Signs of Softness
The U.S. economy grew 2.5% in 2024, but early 2025 data shows moderation in retail sales and hiring.
- January retail sales dropped 1%, but rebounded 0.2% in February.
- Job growth slowed in early 2025, with 151,000 jobs added in February (down from late 2024).
- The unemployment rate stands at 4.1%, remaining stable.
2. Inflation Progress, But New Risks Emerge
- Inflation has dropped from 7% in mid-2022 to 2.5% in early 2025.
- However, inflation progress has slowed since last summer.
- Goods inflation turned positive in early 2025, reversing a downward trend.
Inflation expectations are rising again, especially due to uncertainty over trade policy and tariffs.
3. The Federal Reserve’s Stance
The Fed is keeping interest rates steady, maintaining a restrictive policy stance while monitoring inflation trends.
“I supported the decision to maintain the policy rate, as I see our current stance as restrictive but necessary to manage inflation.” – Governor Adriana D. Kugler
She reaffirmed the Fed’s commitment to bringing inflation down to 2% while maintaining a strong labor market.
Conclusion: A Bright Future for Latino Entrepreneurs and the U.S. Economy
Governor Kugler’s speech highlighted Latinos’ economic power, their growing role in business and labor markets, and the Fed’s approach to economic stability.
- Latino-owned businesses are growing rapidly, creating jobs and leading in technology adoption.
- Latino workers are essential to key industries, boosting the nation’s workforce.
- The U.S. economy remains strong, but inflation remains a challenge.
As the Latino population and workforce continue expanding, their impact on the economy will be more important than ever. With continued investment, education, and access to capital, Latino entrepreneurs and workers will drive the next phase of American economic growth.
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