Yellen announces $100 million affordable housing fund as shelter costs weigh on Biden

• Treasury Secretary Janet Yellen rolled out a slate of financing initiatives to support new housing development including a $100 million fund for affordable housing.
• The announcement came as Yellen met with housing officials and CEOs in Minnesota, part of a broader administration-wide effort to tout President Biden's economic agenda.
• Inflation will likely be a key focus of the first presidential debate of the 2024 election between Biden and Donald Trump this week.

Treasury Secretary Janet Yellen on Monday unveiled a new slate of financing initiatives to support housing development, including a $100 million fund specifically for affordable housing.

The announcement came days before President Joe Biden faces off against former President Donald Trump in the first presidential debate, where inflation is likely to be a key point of contention.

The past several inflation reports have shown prices slightly cooling off, but shelter costs have remained persistently hot. The latest consumer price index report found overall inflation stayed flat in May while shelter inflation rose 0.4%.

"I expect that shelter inflation will moderate," Yellen said at a speech in Minneapolis Monday afternoon. "But we face a very significant housing supply shortfall that has been building for a long time and this supply crunch has led to an affordability crisis."

As part of its new actions, Treasury will provide $100 million over the next three years to finance affordable housing projects. It is also calling on several agencies that help finance housing to bolster their support for new development.

Yellen's speech was part of a multi-day tour around Minnesota, that includes lunching with CEOs and holding roundtables with state housing officials.

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