Janet Yellen, the Treasury Secretary, has recently announced a series of financial initiatives aimed at supporting housing development. One of the key initiatives includes a $100 million fund specifically earmarked for affordable housing. This announcement comes at a critical time, just before President Joe Biden is set to debate former President Donald Trump, where inflation is expected to be a major talking point.
While recent inflation reports have shown a slight cooling off in prices, shelter costs have remained consistently high. In fact, the June consumer price index reported that overall inflation stayed flat in May, with shelter inflation rising by 0.4%.
As part of these new actions, the Treasury plans to provide $100 million over the next three years to finance affordable housing projects, calling on other agencies to increase their support for housing development. Janet Yellen is set to formally discuss these housing initiatives in Minneapolis, as part of her tour around Minnesota.
Meanwhile, President Biden is preparing for the upcoming debate at Camp David, as his cabinet members, like Acting Secretary for Housing and Urban Development Adrianne Todman and Transportation Secretary Pete Buttigieg, travel across the country promoting the administration’s economic agenda.
The economy has emerged as a major concern for Biden as voters continue to express discontent over the record inflation brought about by pandemic-related disruptions. Housing costs, in particular, have remained stubbornly high despite cooling in other sectors.
Biden has shifted blame for high housing costs onto corporate landlords, accusing them of “rent gouging” and keeping consumer rents artificially inflated. The president has expressed solidarity with frustrated consumers, stating, “Folks are tired of being played for suckers. And I’m tired of letting them be played for suckers.”
In conclusion, these latest financing initiatives for housing development reflect the administration’s commitment to addressing the ongoing challenges of affordability and inflation in the housing market.
