US Markets
Monday, June 24th, 2024 3:17 pm EDT
Key Points
- Treasury Secretary Janet Yellen announced a $100 million fund for affordable housing as part of new financing initiatives to support housing development.
- This announcement comes just before the first presidential debate, where inflation, including persistent shelter costs, is expected to be a major issue.
- The Biden administration is actively promoting its economic agenda, with cabinet members traveling nationwide to highlight infrastructure investments, amid ongoing concerns over high housing costs and inflation.
Treasury Secretary Janet Yellen on Monday introduced a series of new financing initiatives to support housing development, including a significant $100 million fund dedicated to affordable housing. This announcement precedes the first presidential debate between President Joe Biden and former President Donald Trump, where inflation is expected to be a prominent topic. Despite recent inflation reports indicating a slight cooling of prices, shelter costs have continued to rise, with the June consumer price index showing a 0.4% increase in shelter inflation while overall inflation remained flat.
The Treasury’s new actions include a commitment of $100 million over the next three years to finance affordable housing projects, alongside a call for various housing-financing agencies to enhance their support for new developments. Yellen is set to formally discuss these initiatives in a speech in Minneapolis, part of a broader tour in Minnesota where she will engage with CEOs and housing officials.
While President Biden prepares for the upcoming debate at Camp David, several cabinet members, including Yellen, Acting Secretary for Housing and Urban Development Adrianne Todman, and Transportation Secretary Pete Buttigieg, are actively promoting the president’s economic agenda nationwide. These efforts are part of a broader campaign to highlight Biden’s infrastructure investments and economic policies.
The economy remains a contentious issue for Biden among voters, particularly due to the lingering effects of pandemic-era supply chain disruptions and labor shortages that have led to record inflation. Despite efforts to control it, many consumers still feel the strain of higher prices, with housing costs being a significant concern. These costs have remained high even as other sectors have seen price stabilization, contributing to the economic pressures faced by many Americans.
President Biden has attributed high housing costs to corporate landlords, accusing them of “rent gouging” by keeping rents high despite declining costs. In March, Biden expressed frustration with the situation, stating, “Folks are tired of being played for suckers, and I’m tired of letting them be played for suckers.” In response, the National Apartment Association, a major landlord lobby, rejected Biden’s criticisms, emphasizing that politics should not interfere with housing policies. The association asserted its commitment to advocating for housing providers throughout the campaign season.
Yellen’s announcement and the broader administration’s efforts underscore the ongoing challenges in addressing housing affordability and inflation, critical issues that are likely to influence public opinion and voter behavior in the upcoming election.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/06/24/yellen-affordable-housing-fund-biden-election-shelter-inflation.html
