Janet Yellen unveils $100M affordable housing fund as shelter costs influence Biden

Treasury Secretary Janet Yellen has introduced a series of financing initiatives aimed at supporting housing development, unveiling a $100 million fund specifically for affordable housing. This announcement precedes the upcoming presidential debate between President Joe Biden and former President Donald Trump, with inflation expected to be a significant topic of discussion. Recent inflation reports have shown a slight cooling in prices overall, but shelter costs have remained high, with shelter inflation rising by 0.4% in May. As part of these new actions, the Treasury plans to allocate $100 million over the next three years to finance affordable housing projects and is urging housing finance agencies to enhance their support for new development. Yellen's speech in Minnesota, where she is engaging with CEOs and housing officials, is part of a broader effort by Biden's cabinet members to promote the president's economic agenda nationwide. The economy has become a key concern for Biden among voters, particularly due to pandemic-related supply chain disruptions and labor shortages that have led to record inflation, leaving consumers feeling the pinch of higher prices. Polls indicate that many blame the president for the ongoing high housing costs, which remain elevated even as other sectors have cooled down. Biden has sought to shift the blame onto corporate landlords, accusing them of keeping rents artificially high through "rent gouging." The focus on housing development and affordability comes at a crucial time as the debate over inflation intensifies. Yellen's initiatives aim to address the persistent challenges in the housing market and provide support for affordable housing projects. The efforts to bolster financing for new development reflect a broader strategy to tackle economic issues and alleviate the financial burdens faced by consumers. As the debate between Biden and Trump looms, the discussion around inflation and housing costs is expected to take center stage, highlighting the importance of these financing initiatives in addressing critical economic concerns.