Message from the President | April 2022
Spring has arrived and the rollercoaster Ohio weather is beginning to tease us with a few warm sunny days. Unlike the weather here in Ohio, CNB is off to a strong and consistent start to the year. Loan demand from our business and agricultural clients has been steady and our team is working hard to ensure we are providing all the products and services our clients need to grow their businesses and farms.
Speaking of consistency, while we were looking forward to a more normal 2022, the rest of the world had different plans. The Ukrainian conflict is dominating the headlines and has impacted the US markets and economy. Beyond higher gas prices and eliminating oil imports from Russia, both Russia and Ukraine produce roughly 29% of the global wheat supply. Additionally, Ukraine is a large producer of metals and other commodities. Shortened supply of imports from these countries will drive supply and pricing globally.
Back home in the US, we are grappling with the highest documented inflation since 1981. The Federal Reserve has begun raising interest rates and shrinking its balance sheet. These tools help minimize the supply of money in the market and increase the costs of borrowing in the hopes demand is reduced, thus taming inflation. However, consumers are sitting on record amounts of cash so it may take some time for the effect of these moves by the Fed to substantially reduce inflation.
For now, we sit well prepared to help our clients with any needs they have to maneuver, maintain or grow their businesses in this challenging environment. How have these obstacles impacted you both professionally and personally? Reach out to your local CNB contact. We would love to hear from you!View more Articles