“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
A light read today, but there is important information to share regarding the recent interest rate hike, the continually interesting topic of AI, and some opportunities with tax credits and surveys.
Although a month away, I’ll start pushing our next member luncheon. Join us on Thursday, October 29 for the State of the County address with Will County Executive Jennifer Bertino-Tarrant. Reservations are open:
https://members.jolietchamber.com/events/details/2026-member-lunch-october-state-of-the-county-address-with-will-county-executive-jennifer-bertino-tarrant-7852
*Government Affairs Roundup brought to you by CITGO*
Interest Rates Tick Up as Inflation Persists
The Federal Reserve has increased interest rates by a quarter-point, marking its first rate hike in several years as policymakers respond to persistent inflation. The Federal Open Market Committee voted unanimously to raise the federal funds rate to a range of 3.75% to 4%, bringing rates back to levels last seen about a year ago.
The move was widely anticipated. Financial markets had priced in a strong likelihood of a quarter-point increase, with traders assigning roughly a 93% probability ahead of the announcement. Economists also largely aligned with that expectation, particularly after recent inflation data showed prices rising 3.4% annually in August, according to the Consumer Price Index.
Despite moderating from earlier highs, inflation remains above the Federal Reserve’s long-term 2% target. The central bank’s preferred gauge, the personal consumption expenditures (PCE) price index, reached 4.1% in May and measured 3.7% in July, reflecting ongoing price pressures. Updated PCE data is expected at the end of September.
The recent uptick in inflation follows a period of relative stability, when price increases had eased and held between roughly 2.3% and 3% for more than a year. However, global energy market disruptions tied to geopolitical tensions have contributed to renewed upward pressure on prices. Inflation peaked at 4.2% earlier this year before easing slightly in recent months.
The current rate increase follows a longer arc of monetary policy adjustments over the past several years. After inflation surged to a 40-year high of 9.1% in June 2022, the Federal Reserve embarked on an aggressive series of rate hikes throughout 2022 and 2023, eventually pushing rates to a range of 5.25% to 5.5%. Rates were held at that level for more than a year before the Fed began gradually lowering them in late 2024 as inflation cooled.
Looking ahead, Federal Reserve officials indicate that additional rate increases remain possible. In the latest summary of economic projections, a majority of policymakers expect at least one more hike before the end of the year. Twelve of 18 officials projected a single additional increase, while four anticipated two more hikes and two expected rates to remain unchanged.
Illinois Launches AI Cabinet, Signaling Growing Regulatory Focus
Illinois is taking additional steps to address the rapid growth of artificial intelligence with the creation of a new statewide advisory group focused on evaluating risks and guiding future policy. Governor JB Pritzker signed an executive order establishing the Illinois Artificial Intelligence Cabinet, which will examine potential impacts of AI on public safety, critical infrastructure, and residents across the state.
The cabinet will bring together experts from fields including academics, law, ethics, and governance, and will work in coordination with several state agencies such as the Department of Innovation and Technology, the Department of Public Health, and the Illinois Emergency Management Agency. Members are expected to be appointed in the coming weeks and will provide recommendations on risk mitigation, protection of public assets, and potential regulatory approaches.
The initiative builds on broader efforts in Illinois to establish a framework around artificial intelligence. Earlier this year, the state enacted a package of AI-related regulations requiring advanced technology developers to undergo annual independent audits and publish safety plans outlining how they will address significant risks. These measures include safeguards tied to scenarios involving large-scale harm or threats to public systems.
The creation of the cabinet comes amid increasing national and global attention on artificial intelligence as both a driver of innovation and a source of potential concern. Industry leaders and researchers have continued to call for thoughtful oversight and the development of guardrails as AI technologies evolve and become more integrated into daily life.
State officials have emphasized the importance of balancing innovation with responsible use, noting that artificial intelligence presents both opportunities and challenges for governments, businesses, and communities. Collaboration with institutions such as the University of Illinois is expected to play a role in shaping the state’s approach, with a focus on advancing technology while addressing issues such as privacy, bias, and system reliability.
Advancing Innovative Manufacturing (AIM) Tax Credit
Illinois manufacturers looking to invest in advanced technology and expand their operations may be eligible for the Advancing Innovative Manufacturing (AIM) Tax Credit. Established in 2025, the program is designed to support manufacturing projects that incorporate cutting-edge technologies and include significant qualified capital improvements. The AIM Tax Credit provides an opportunity for businesses to invest in innovation, strengthen operations, and support continued manufacturing growth across Illinois. Applications are now open. Businesses interested in learning more about eligibility and the application process can visit the AIM program website or contact their DCEO Team RED representative for assistance.
Chicago Fed Survey of Economic Conditions
We’re looking for businesses to share their feedback. If you currently fit the definition below, please register to receive the link for the monthly survey.
Do you…
- work for an organization that operates in Illinois, Indiana, Iowa, Michigan, or Wisconsin?
- track your organization’s performance measures?
- want to help the Federal Reserve understand current economic conditions?
If you do, we invite you to participate in the Chicago Fed Survey of Economic Conditions.
- The survey is conducted twelve times per year and takes about ten minutes.
- Results are shared with the Chicago Fed’s president and help inform monetary policy.
- Individual responses are kept confidential, but aggregate results are made public, so you can learn how you compare with your peers.
To join the survey, submit your contact information here: https://frbchicagodistrict.gov1.qualtrics.com/jfe/form/SV_6EDcFIIXm3kR6R0
For more information and results of the August survey you can visit, https://www.chicagofed.org/research/data/cfsec/current-data
Federal Reserve’s 2026 Small Business Credit Survey
Owners and key financial decision makers of for-profit businesses, share your recent experiences about what financial conditions you face, whether and how you use debt, and more. Your perspective matters. Answers to these questions contribute to data that directly informs the Fed, federal government agencies, service providers, policymakers, and others, a public good ultimately benefiting your business and others like yours.
Survey closes November 13, 2026. Click below to take the 12-minute survey now:
https://fedreserveboard.gov1.qualtrics.com/jfe/form/SV_38k9xZy8ayEERue?orgID=20261024
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct